EUR/GBP Steady Amid German Politics and Lower Oil Prices

The EUR/GBP exchange rate remains largely unchanged at around 0.8575 on Monday, as concerns over German politics and the impact of lower oil prices offset each other.

German Chancellor Friedrich Merz's party suffered a setback in regional elections over the weekend, with Merz describing the result as a 'disaster' while reiterating his intention to remain in office and pursue economic reforms. This development keeps investors cautious towards the Euro at the start of the week.

However, lower oil prices provide some support for the common currency, with Brent crude falling below $100 and trading more than 8% below last week's highs. This is generally positive for Eurozone economies, which rely heavily on energy imports, as it eases cost pressures on businesses and consumers.