The Euro moved higher during Tuesday trade as investors exhaled a collective sigh of relief over an improvement in Italy's borrowing costs. News ahead of the Italian government's release of next year's budget, which the Economic Minister said should improve bond yields, helped to alleviate some worries and gave the Euro a boost. Keeping gains capped, however, is concern over the escalation of a trade war between China and the United States.
As reported at 11:21 am (BST) in London, the EUR/USD was trading at $1.16, down 0.03%; the pair had earlier hit a peak of $1.16442 while the low was posted at $1.15778. The EUR/GBP is trading at 0.88938 Pence, down 0.08%; in today's trade, the pair has ranged from 0.88882 Pence to 0.89376 Pence.
Brexit Hopes Build
Sterling continues to enjoy the benefit of new-found hope for a positive resolution to the Brexit. Michel Barnier's comments that a Brexit deal could be expected within eight weeks helped to push the Pound to a level not seen since early August. Fears that a disorderly exit for Britain was the only option available have put significant pressure on the Pound. Analysts say that with hopes now underpinned on those comments by the EU Chief Negotiator then the Pound should be able to ride higher on a positive tailwind. The GBP/USD was trading flat at $1.30; the pair has ranged from $1.2989 to $1.3087 in today's session.