Sterling continued its bullish run against the Euro today, continuing its recovery from last week where Sterling gained on the Euro for 5 consecutive days.
This rebound has mostly been down to bargain hunters picking up the Pound at these cheaper levels, after the steep sell-off which began at the back end of last year and then picked up steam at the turn of the year as ‘Brexit’ headlines started to dominate.
Whether this positive trend for Sterling bulls continues or not could be decided by the decisions taken by the ECB this Thursday, as speculation builds as to whether there are plans for further Quantitative Easing (QE) or not.
Personally I think that Mario Draghi should announce plans for further QE to aid the flailing Eurozone, then we could see spike in GBPEUR as risk appetite returns to the market. Generally speaking Sterling performs well in times of increased market risk along with the main UK equity index, the FTSE 100, and I can foresee a bounce on both fronts should the ECB announce further QE.