Pound to euro exchange rate: Sterling continues its four-month lull
THE POUND is suffering from a four month low and shows little sign of improving soon. Brexit uncertainly and tension between UK and EU leaders is partly to blame.
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Pound to euro exchange rate saw little change on Thursday, with Bloomberg reporting a rate of 1.1207 at 7.20 this morning.
This ever slight increase compares to an exchange rate of 12.05 yesterday morning.
The sterling was knocked back down following a post-Brexit trade report submitted by EU officials.
This report, however, failed to gain enthusiasm with an agreement yet to be agreed by both parties.
Currency analyst Laura Parsons commented: “The GBP/EUR exchange rate remained on the back foot on Thursday.”
Yesterday she forecast a further fall could be on the cards for the pound after the European Central Bank (ECB) revealed its latest report.
However, the report released had little effect on the pound.
“While there was no news or data to lend the pound support, euro exchange rates surged after the European Central Bank’s (ECB) latest interest rate decision proved less dovish than expected”, explained Laura.
Mario Draghi later “talked the euro back down”
Fortunately for the UK, the rise in the euro didn’t last long as Laura revealed the ECB president, Mario Draghi later “talked the euro back down”.
Yet she goes on to add this has had little impact on the pound as it remains down close to a fourth-month of continued “lows’.
The steady low period has reeled off continued talks of the position of the UK after Brexit.
In a comment earlier in the week, Laura highlighted that “EU and the UK are still distinctly at odds over Brexit.”
Parsons went on to add that there is continued tension between Prime Minister Theresa May and EU leaders.
Looking ahead at weekend, Ms. Parsons has highlighted that the “sterling could slip again”.
She explained the pound may fall if today’s NIESR GDP estimated report for the U.K. reflects the loss of momentum forecast by economic experts.
For anyone looking to change money, a rise in the pound is not yet on the horizon.