Pound to euro exchange rate: Sterling suffers despite political chaos in Eurozone
POUND sterling is struggling to gain any ground against the euro, despite ongoing political chaos in Spain.
Martin Lewis reveals how to get the best exchange rate
Brexit woes kept the exchange rate under pressure
The exchange rate is buying €1.116, unchanged from yesterday morning’s levels.
Ongoing political tensions between the Spanish government and the country’s Catalonia region are putting pressure on the Eurozone currency.
But sterling has failed to significantly benefit from a struggling euro.
On Tuesday Catalonia’s president signed a declaration of independence, before suspending the process for the next few weeks.
Pound euro exchange rate: Sterling is struggling despite political protests in Spain
Spain’s Prime Minister has given the leader five days to clarify whether or not he has declared independence for the region.
Mariano Rajoy told parliament Spain was facing the most serious threat to its democracy of 40 years.
Meanwhile political tensions in the UK continue to put the pound under pressure.
With the fifth round of Brexit negotiations underway this week, fears have emerged of a no deal outcome between Britain and the EU in 2019.
Pound euro exchange rate: Sterling is buying €1.116
The exchange rate remains volatile to these concerns, as well as data out of the Eurozone and UK.
TorFX currency analyst Laura Parsons said: “Easing concerns about the Catalan independence crisis and ongoing Brexit woes kept the GBP/EUR exchange rate under pressure on Wednesday.
“The pound remains trading in the region of €1.116 and could ease lower in the hours ahead if the Eurozone’s industrial production figures impress.
“With UK data in short supply for the rest of the week, developments in the fifth round of Brexit negotiations are likely to be the main cause of Sterling shifts.”
Pound euro exchange rate: Political protests have gripped Spain's Catalonia region
Policymakers have hinted that rates will soon rise if the economy appears to remain on track.
Higher interest rates tend to strengthen a currency.
But if there are signs the Bank of England may delay a hike, the pound could take a hit.