Pound to euro exchange rate: Sterling 'holds steady' after bad news for euro

Pound to euro exchange rate: Sterling 'holds steady' after bad news for euro

The pound has seen a failing exchange throughout the week, and the scenario remains the same on Friday.

The pound is currently trading at €1.106 against the euro, according to Bloomberg, and was able to hold against the currency yesterday.

A busy week for Prime Minister Theresa May and politicians saw a block on the spending powers of the Treasury should there be a no-deal Brexit, before the Conservative leader was tasked to drum up another agreement in three days.

Meanwhile Bank of England governor Mark Carney’s speech on Wednesday served to add further uncertainty, resulting in another fall for the pound.

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

She said: “The GBP/EUR exchange rate fluctuated around €1.107 on Thursday.

“Although the pound fell against the other majors on the news that Labour plans to table a vote of no confidence in Theresa May’s government if the Brexit deal is rejected, Sterling was able to hold steady against the euro.

“The common currency came under pressure of its own as minutes from the latest European Central Bank (ECB) policy meeting revealed that some policymakers wanted to downgrade the euro’s economic outlook for 2019.”

Looking ahead to the weekend, she added: “However, with the parliamentary vote on Brexit next week the pound may struggle to hold steady as the weekend approaches.”

The UK’s departure from the EU has had the strongest impact overall on sterling over recent months.

The country is now facing fewer than 100 days to go until the scheduled departure date.

However, Britons do not need to fear Brexit affecting holidays.

A Downing Street spokesperson has said it was “categorically untrue” that people had been warned not to book trips beyond March 2019.

Travel agents’ body ABTA has said: “There is nothing to suggest that you will not be able to continue with your holiday plans after 29 March.

“Even in a no-deal scenario, the European Commission and UK Government have said flights to and from the UK will still be able to operate.”

Elsewhere, authorities have warned the euro could face difficulties in 2019 if reform does not take place.

The Centre for Economic and Business Research said in its annual predictions for 2019 “internal contradictions” would force the Eurozone to “integrate economically” or “risk breaking up.”

It remains to be seen whether the gap between the sterling and euro rates will vary further.

Published at Fri, 11 Jan 2019 07:46:00 +0000

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