Pound to Euro exchange rate: Sterling retains its rise following positive Brexit outlook
THE POUND has retained its recent rise following positive Brexit progress and the release of the Bank of England’s latest interest rate decision which may hike interest rates in May.
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The pound is currently trading against the euro at £1.1355 having managed to maintain its recent gain over the weekend.
Last week saw the pound managed to secure its position against the euro during tension between Russian leaders and the UK over the chemical weapon attack in Salisbury.
The Spring debt announcements made last week, the lowest levels of debt since the financial crisis in 2008, also caused the pound to fluctuate.
However, comments released at the end of last week regarding the state of UK post-Brexit managed to push the sterling up.
In a comment on Friday, Laura Parsons Currency analyst at TorFX explained the positive pound to euro rates were in correlation to a comment made by Scotland’s First Minister Nicola Sturgeon, who revealed that "Brexit can be done”.
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Over the weekend, the pound showed little movement but managed to hold its recent rise.
However this week could be anything but still for the pound as Laura Parsons, Currency analyst at TorFX highlighted on Friday that the Bank of England (BoE) will be delivering its latest interest rates this week.
Laura explained: “Last week was pretty uninspiring in terms of market-moving news, but this week promises to be anything but dull.”
Looking ahead at the beginning of the week, Laura highlighted that the latest UK inflation and employment figures are due in the first half of the week.
However, she explained this might not have that much impact on the pound as the BoE.
GBP/EUR volatility is more likely to be triggered by the EU Summit and Bank of England (BoE) rate decision
She said: “GBP/EUR volatility is more likely to be triggered by the EU Summit and Bank of England (BoE) rate decision.”
In a statement released by Prime Minister, Theresa May, last week, a ‘hopeful’ outset was delivered in regards to the UK post-Brexit.
Theresa explained: "I am determined to secure a settlement that delivers an unprecedented democratic dividend for the people of Scotland, Wales, and Northern Ireland, while protecting and preserving the precious Union that is at the heart of our past, present and future success."
This positive frame of mind has so far proved good news for the pound as Laura predicts that this will continue.
“The pound was trading at €1.134 ahead of all the excitement, and Sterling could shoot higher on Brexit progress or hints that the BoE will hike interest rates in May," said Laura.
This positive rise follows a four-month lull in the pound to euro exchange rate following Brexit Uncertainly.
This latest positive stance on brexit follows a statement released by Scotland’s First Minister, Nicola Sturgeon.
The Scottish minister asserted that a “Brexit deal can be done”. She went on to add: “There is still some way to go, but there is a willingness, indeed a determination, to see if we can get there."
