Pound to euro rates are still trading below 1.13 this morning, with the EUR finding plenty of support around this threshold this week.
Pound to euro rate
Sterling hit a low of 1.1269 earlier this week, which was a continuation of last week’s negative trend. The pound has struggled to hold its value over the past week, as the on-going negative perception surrounding Brexit continues to weigh heavily on investors risk appetite for GBP.
Good UK economic data does little to help pound to euro rates
There was some better news yesterday for the UK economy, in the form of the latest Services PMI data. The reading 51 came in above the markets expected result and indicates expansion in the sector. This was a welcome relief following the poor Construction & Manufacturing PMI data released earlier this week but despite yesterday’s positive release, the pound has yet to find any significant support against the euro.
In truth, the better than expected figure may well have just helped to curb any further losses in value for the pound, which has seen its value decline following a host of negative data releases this week, including the latest UK Retail Sales figures. These in particular, painted a worrying picture of the UK’s current economic health, with UK high street sales falling by 2.7%. This was the biggest drop for 24 years and is likely to act as a key indicator for investors, who look unlikely to return their funds to GBP with any haste, based on the UK’s current economic predicament.
Whilst market conditions can change quickly and without notice, it would seem as though the pound is unlikely to gain any sustainable support whilst the upcoming Conservative leadership elections take place. Until a new PM is in number 10 it will not be clear which direction Brexit is likely to take, which will continue the uncertainty that has already pushed GBP/EUR down to the current levels.
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