The pound to euro exchange rate staged what might be seen as a remarkable recovery last week, rising close to 3 cents between the highs and the lows on the interbank exchange, from lows of 1.07 to nearly 1.10 on Friday. The 2.5% increase on the interbank rate presented some highly valued improvements for euro buyers, looking for respite following a tough few weeks for the pound against the euro.
Pound to Euro exchange rate as Brexit uncertainty continues
This week, it will be interesting to see if the pound can continue its form, or whether it will struggle against the uncertainties of no-deal Brexit as it has done in recent weeks. Sterling has been reactive to the headlines on the UK’s exit from the EU, any fresh news on the likelihood of a hard no-deal Brexit might continue to be a factor on the pound.
Euro slides as ECB announce monetary easing
From the euro side, we have seen increased prospects of some form of monetary easing weighing on the single currency. Looking to the ECB (European Central Bank), investors may be poring over Inflation data released Monday, before note is taken of the latest news from the ECB on Thursday. The latest ECB Minutes is released on Thursday which will provide some insight from the latest meeting and could help the market in deciding what lies ahead next for monetary policy in the Eurozone.
There had also been suggestions that the no-deal Brexit that has seen the pound losing so much ground, might also not be as straightforward as thought, with many reports suggesting oppositions in parliament.
Economic news this week
Other news this week for the UK is limited on the economic data front, aside from the latest UK Government Borrowing data. GBP/EUR rates could take cues from the economic data but generally speaking, the politics has been the main event.
Running in the background too this week will be the Jackson Hole Symposium, an economic forum which may see Brexit and other global events mentioned. GBP/EUR rates have been rather unsettled lately with 6 cents between the high and the low on the interbank rate since July 25th.
The pound to Euro rate is anything but predictable of late, if you have a transfer to consider then please speak to one of our expert team to discuss the latest news and events that are moving the market.