Pound to euro exchange rate: Sterling stands firm against euro in absence of Brexit news
THE POUND to euro exchange rate held firm at the end of last week despite hitting a new low thanks to Brexit uncertainty. GBP to EUR is at €1.129 currently. However, the outlook is slightly brighter this week. The Post Office is offering €1.0994 today, up from 1.0939 last week.
The Bank of England explains the exchange rate
The pound to euro exchange rate is faring better this week after hitting new lows last Monday.
Despite the fact that various reports show the UK economy struggling, the pound is managing to stand up against the euro this far.
Laura Parsons, currency analyst at TorFX said: “Although the UK’s retails sales data disappointed on all fronts, the pound managed to stand firm against the euro before the weekend.
“Reports that German Chancellor Angela Merkel is not frustrated by the UK’s Brexit negotiations but is curious to find out more about the nation’s aims after meeting with PM Theresa May also helped GBP/EUR hold at €1.129.”
Pound to euro exchange rate: Sterling firm in absence of Brexit news
Various reports might have an impact on the performance of the pound today.
Ms Parsons said: “UK house price data and Eurozone construction output figures are the only reports worth watching out for today.
“As both sets of stats are fairly low impact, GBP/EUR movement may be limited in the absence of any fresh Brexit news.”
The pound to euro exchange rate struggled last week.
Ms Parsons 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.”
On Thursday Ms Parson said: “The GBP/EUR exchange rate continued losing ground on Tuesday despite the UK publishing stronger than expected inflation data for January.
“The pound failed to hold on to its gains and slid against the euro ahead of the release of German inflation data and growth figures from the Eurozone.”