The Pound to Euro exchange rate lost altitude in early trade on Wednesday as the US Dollar unravelled afresh in an apparent response to the latest in the US-China trade conflict, and a proposal in Washington for a tax on foreign holdings of American assets to be imposed on some jurisdictions.
Speculative traders should consider selling the Pound to Euro rate on rallies in anticipation of a renewed decline to 1.1409, according to the JPMorgan FX desk.
The Pound to Euro exchange rate fell to 19-month lows last week in what was its largest five-day decline since September 2022, however, the pair could stabilise in the days ahead and may even have scope for a partial rebound if the latest UK inflation figures help the Sterling bond market onto a better footing.
The Pound to Euro exchange rate was on course for its largest weekly loss since September 2022 on Friday following a rout in US Dollar rates and a parabolic rally by the single currency, with GBP/EUR now appearing set to trade in a narrow 1.1489 to 1.1543 range through the session ahead.