Pound to exchange rate of the euro: Sterling has another & # 39; dismal week & # 39; because Brexit is afraid of fluctuations Travel news To travel

The pound dropped last week after a new warning about how a no-deal Brexit could harm the UK in the future.

However, with the new Eurozone data released today, the pound-to-euro exchange rate may experience some movement, experts have said.

The pound is currently trading at € 1,115 against the euro, according to Bloomberg.

Laura Parsons, currency analyst at TorFX, spoke with Express.co.uk about the latest exchange rate figures.

"After another fairly sombre week for the pound, the GBP / EUR exchange rate fell to € 1,115.

"British data is lacking until tomorrow, unless today some Brexit revelation, the main cause of GBP / EUR relocation is probably the data of the Eurozone today, including figures on construction output and a speech from an official of the European Central Bank (ECB). "

The warning from Foreign Minister Jeremy Hunt about a Brexit without a deal was responsible for lowering the GBP / EUR exchange rate to € 1,115 on Friday – the worst level of the week.

Hunt added his voice to many who warned of the consequences of a bad Brexit deal, saying: "[A no-deal Brexit] would be a mistake that we would regret for generations. "

This assessment had a noticeable negative effect on the demand for the pound, although Hunt later commented on his comments by saying: "[It is] important to not misrepresent my words.

"Britain would survive and thrive without a deal … but it would be a big mistake for Europe because of the inevitable impact on long-term cooperation with the UK."

At the end of a week that caused fears of higher British inflation that led to wage shortages, the pound found little domestic support last week.

Euro traders had a better run of economic data on Friday, with inflation growing in the year in July.

In July, the final annual results led to an increase in the projected forecasts, which means that the year-end & # 39; year figure exceeds the target of 2.1% for the European Central Bank (ECB).

These results have generated hope for a rate hike in early 2019 from the ECB, as higher inflation gradually increases pressure on central banks to raise interest rates.

Another factor that supported the euro on Friday was the news that the economic crisis in Turkey could be resolved and that in this way damage to the banks in the euro zone would be prevented.

Just as Qatar has promised to invest billions of dollars to support the Turkish economy, the Turkish Minister of Finance, Berat Albayrak, has outlined plans to reduce inflation.

Although the option to increase Turkish interest rates is not likely at present, these planned measures have still reassured traders and raised the lira and the euro.

The first important piece of economic data this week will come from the euro zone and include the reported construction output of the year in July.

Last week, the Turkish lira was sold out in many travel agencies or ran the risk of an influx into Britons who wanted the best exchange rate after the economic crisis in Turkey causing the ship to collapse.

The strong prices lure British tourists in the light of the euro's struggling exchange rate against the pound.

Source link

Leave a Reply