The British Pound Sterling to Euro exchange rate kick starts the new year on a high note with an appreciation to 1.1746.
The gains come in shallow liquidity conditions as the big markets are only due to open on Tuesday January 2 and we therefore expect GBP/EUR to hang around this level over the coming day.
Pound Sterling has been in retreat for much of December with the highs of 1.20 being rejected and a slip back to sub-1.16 being witnessed.
The recovery to back above 1.17 however confirms the pair was uncomfortable at such low levels. Trade remains largely technical in nature at present – particularly with regards to the Euro which strengthened through December as the ECB faded its asset purchases ahead of the new year.
The new year should see the ECB take a more agressive stance in Eurozone bond markets which could see Eurozone yields come under pressure once more, which will in turn likely weigh on the single currency, PoundSterlinLive reports.
