Sterling has found some welcome support against the EUR this morning, following the opening of European trading.
Pound to euro rate remains at 1.14
GBP/EUR rates have moved back above 1.14, a move which has finally curbed the steady decline we witnessed last week.
In truth, the pound has struggled to sustain its value against the single currency ever since it became apparent that the cross-party Brexit talks were unlikely to yield a positive outcome.
There were rumours a couple of weeks ago that there had been some king of agreement over the customs union debate post Brexit and it is no coincidence that GBP/EUR rates spiked back towards the recent high of 1.17+ on the back of this. Of course, these rumours were incorrect, and the pound has since seen its value fall as investors subsequently sold off their GBP positions in haste.
Pound to euro rates hold ahead of European election results this week
This mornings move has at least brought some respite for those clients holding GBP but any move back towards the recent high over the coming weeks seems unlikely, when we consider this week’s European elections are unlikely to go well for the Conservatives. Any further proof that public opinion has firmly swayed away from the government, will only increase the growing belief that UK Prime Minister Theresa May has lost control of the Brexit proceedings, a view that is not helping to boost investor confidence in the pound.
‘New and improved’ Brexit deal to be put forward, will this aid pound to euro rates?
The PM in response to the breakdown in cross-party talks, has now turned her attention to the withdrawal agreement. According to the Financial Times she has promised to set out a “new and improved” proposal, in an attempt to build cross-party support an hopefully push through the vote at the fourth time of asking, should it take place as expected next month.
The GBP/EUR rate is unlikely to receive the necessary support to help to drive it back towards the recent highs of 1.17+ this week, unless there is a major shock in terms of the European election results. If you would like to ask me a question about GBP/EUR exchange rates or would like to discuss a pound to euro transfer please feel free to contact me directly using the form below.