Pound to euro exchange rate: Sterling recovers as negotiators make progress on Brexit
POUND sterling has recovered against the euro after Brexit negotiators revealed significant progress has been made in talks between the UK and EU.
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Sterling has benefited from a positive update on Brexit negotiations
The exchange rate is this morning sitting at €1.139, after climbing to €1.141 yesterday.
Sterling has benefited from a positive update on Brexit negotiations.
Officials on both sides admitted real progress has finally been made in the controversial talks.
Closing remarks from the EU’s chief negotiator Michel Barnier were a little more measured.
Pound euro exchange rate: Sterling has recovered after progress in Brexit talks
EU chief negotiator Michel Barnier said it could take “weeks or months” for talks to progress to the next stage.
But he did acknowledge that a “new dynamic” had been created by Theresa May’s speech last week.
MUFG currency economist Lee Hardman told Reuters: “He (Barnier) is suggesting that they’re making more progress now and that there’s positive signs in the negotiations this week.
“That backs up the view that if this continues, there’s potentially some scope for EU leaders to grant some concessions to the UK.
Pound euro exchange rate: Sterling is buying €1.139
“If they were to allow the UK to start talking about a transitional deal alongside the divorce talks, that to us is a potentially significant positive for the pound.”
Both currencies have proven extremely sensitive to political events in the Eurozone and UK in recent months.
This was proven most recently in the Germany election at the weekend, when Angela Merkel’s party delivered its worst result in 70 years.
Pound euro exchange rate: Negotiators from UK and EU have made progress in Brexit talks
The euro plunged in response to the shock outcome and amid concerns over increasing support for far-right anti-immigration group Alternative for Germany (AfG).
Uncertainty surrounding two looming elections in the EU could spell disaster for the euro, consequently boosting the exchange rate for the pound.
On Sunday Catalonia will vote on whether to split from Spain - even though the referendum put on by separatists has been branded illegal by Spanish authorities.
Meanwhile in Italy campaigning is due to start imminently for an early 2018 election.