The Pound to Euro exchange rate was steadily trading at 1.105 on Friday morning, after the Chancellor of the Exchequer, Rishi Sunak stated, “we remain confident that it’s possible to get a [Brexit] deal in September.”

Due to hopes for Brexit talks development, GBP investors were more optimistic at the end of the week.

However, Sunak also pointed out that extending the furlough scheme would create a false sense of hope. “It’s wrong to keep people trapped in a situation and pretend that there is always a job that they can go back to,” he told BBC Radio Scotland.

“The government should be helping people prepare for new opportunities, and the chancellor cannot save every single business or every single job.”

Furthermore, the Euro did not manage to beat the Pound, amid Germany’s industrial production in June rebounding to 8.9%. “In the absence of a major accident, Germany can recoup at least half the second-quarter drop in GDP in the third quarter already,” economists said.

Germany’s exports figure for June also supported the Euro, as they exceeded expectations by reaching 14.9%. 

Coronavirus fears held the Euro back from gaining over the Sterling. 

Next week, the BRC like-for-like retail sales for July are set to be released – being key for the currency’s performance.