Pound to euro exchange rate: Sterling climbs BACK after Theresa May’s Brexit dinner

POUND sterling has climbed back this morning after Theresa May attended an EU summit dinner in Brussels during Brexit negotiations.

Theresa May announces EU citizens WILL be able to stay in UK

The exchange rate has showed signs of recovery as it jumped to €1.138 today. 

It climbed from €1.133 yesterday and sits comfortably above a weekly low of €1.131. 

The pound has risen after Theresa May attended an EU summit dinner last night in Brussels. 

Despite the event remaining separate from the formal Brexit negotiations, there was one revelation fro the Prime Minister. 

Mrs May offered three million EU citizens the right to stay in the UK in exchange for one million Britons to stay living in the Union.

Pound euro exchange rate Theresa MayGETTY

Pound euro exchange rate - sterling has risen after Theresa May's Brexit dinner in Brussels

The spotlight was back on Brexit as PM Theresa May attended an EU summit dinner in Brussels

Laura Parsons

TorFX currency analyst Laura Parsons said: “The spotlight was back on Brexit yesterday as PM Theresa May attended an EU summit dinner in Brussels. 

“While the dinner wasn't officially a chance for negotiations to progress, May did lay some of her cards on the table. 

“The PM announced that three million EU nationals currently residing in the UK would be allowed to remain in the nation post-Brexit as long as the same could be said for one million Brits living in European nations.”

Though rising slightly against the euro, the pound didn’t have the desired boost for investors.

Ms Parsons said: “The news had little impact on the pound during the Asian session, with GBP/EUR hanging around the €1.137 level.”

Pound euro exchange rate Theresa MayXE

Pound euro exchange rate - sterling is buying €1.14

But there could be more gains ahead, thanks to this week’s hint of an interest rate rise. 

Bank of England chief economist Andy Haldane spoke out against the Governor to say he would consider voting for a rate hike

Mr Haldane said: “Provided the data are still on track, I do think that beginning the process of withdrawing some of the incremental stimulus provided last August would be prudent moving into the second half of the year.”

The comments came just one day after Governor Mark Carney said “now is not the time” for an interest rate rise.

Pound euro exchange rate Theresa MayGETTY

Pound euro exchange rate - Theresa May attended an EU summit dinner in Brussels

This sentiment was in spite of a shock 5-3 vote last week from the Monetary Policy Committee (MPC). 

Three policymakers voted for a rate rise which far surpassed the widely expected 7-1 count. 

Fawad Razaqzada, market analyst at Forex.com, said: "Mr Haldane said that the risk was that the Bank tightened its belt too late rather than too early. 

"With the Bank of England turning hawkish and ECB remaining dovish, the EUR/GBP could come under pressure in the coming days and weeks."

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