Pound to euro exchange rate: Sterling continues to drop against Eurozone currency
POUND to euro exchange rate offered up bad news for sterling this morning as it continued to go dow agains the Eurozone currency.
The Bank of England explains the exchange rate
The pound to euro exchange rate sat at 1.1272 according to Bloomberg figures this morning.
Today is a big day for British currency as Britain will explain how it wants the City to operate post-Brexit.
The UK is known to prefer a “mutual recognition” project, which will mean regulation will preserve the City of London’s access to the EU.
Whatever is said could have a big impact on the pound’s performance today.
Pound to euro exchange rate: Sterling continues to drop against Eurozone currency
Three senior figures briefed on Brexit discussion in the cabinet revealed to the Financial Times that the government will back the proposal of “mutual recognition”.
It is also backed by the Bank of England.
Under this new plan, the UK would set its own rules to meet commonly agreed objectives such as consumer protection and financial stability.
Miles Celic, chief executive of TheCityUK lobbying group, told the FT: “This has been our plan A, plan B and plan C for about 12 months or more.”
This week has not been a good one for sterling, which has been caused harm by Brexit uncertainty, according to experts.
Laura Parsons, currency analyst at TorFX said: “The pound’s bad week continued on Wednesday, with GBP exchange rates falling in reaction to the International Monetary Fund’s latest assessment of the UK economy.”
The International Monetary Fund is an international organisation that surveys currencies around the world.
However, the board has claimed the pound will be badly damaged by Brexit unless Britain generates more wealth.
Ms Parsons said: “The IMF asserted that Britain needs to improve productivity and competitiveness in order to cope with the ramifications of Brexit.
“However, GBP/EUR losses were limited as German inflation slowed and the euro came under pressure of its own.
“Brexit concerns and speeches from ECB officials are likely to be the main catalysts for GBP/EUR movement today.”
Anyone planing on changing currency in the immediate future should be keeping a close eye on talks today for changes in the market.