It's very difficult to say. The King didn't have much say in foreign policy (or any policy) and if Edward was King he would be kept at barge-pole distance by his ministers. Mine and RogueBeaver's TL Irrevocable Determination deals with Edward becoming King in 1930 and staying on the throne permanently, and Britain builds stronger relations with Italy, not Germany. This is as a result of butterflies, however, and as of the latest updates in about 1937, Edward has begun to make inappropriate statements about fascism and may be expected to say some public things about the Germans that his government will not like.
However that's just one very specific reading. With a 'perfect storm' scenario of Edward becoming King and a lackey of his becoming PM - although he and Churchill were close, getting Churchill to trust the Germans is ASB in the extreme and he was nobody's lackey - you might see warmer Anglo-German relations. I wouldn't like to say how that could come about though.