The pound to euro exchange rate has suffered this week but today shows some sign of improvement.
According to the latest Bloomberg figures, the pound to euro is trading at 1.1205 this morning.
This is a slight increase from Wednesday’s exchange rate of 1.1180.
Currency analyst for TorFX, Laura Parsons has explained why the pound suffered yesterday.
Laura said: “The GBP/EUR exchange rate remained below €1.120 on Wednesday as the EU’s draft proposals for its post-Brexit trade relationship with the UK failed to inspire much enthusiasm.”
This report follows further failing from the the EU and UK as to a post-Brexit deal.
A previous first draft of the EU withdrawal terms “came under heavy fire” with no decisions having yet been made.
On Tuesday, EU Michel Barnier and Stefaan de Rynck highlighted that the EU and UK are “still distinctly at odds over Brexit”.
The pound to euro exchange rate has suffered this week
Laura has predicted a further fall could be on the cards
A statement that highlighted the continued tension between Prime Minister Theresa May and EU leaders.
Looking ahead at the future of the pound, Laura has predicted a further fall could be on the cards.
She warned this fall could follow a policy meeting at the European Central Bank (ECB).
Ms Parsons advised the pound could fall against the euro “if the ECB is hawkish in its latest policy meeting”.
ccording to the latest Bloomberg figures, the pound to euro is trading at 1.1205 this morning
Uncertain Brexit proposals from the EU keep sterling low
“However”, continued Laura, “investors are expecting the ECB to reiterate its intention to keep policy loose for the foreseeable future.
If that proves to be the case, Sterling might be able to claw back some losses.”
As such, the forecast for the pound today hangs with the European Central Bank.
If, as predicted by investors, polices are slackened, the pound may be able to rise up against the euro.