The pound is at risk of another “dip” today, according to finance experts. Sterling pushed to a two-year high against the euro last Thursday, yet the impressive milestone has reversed during a new week of trading. The blame, according to finance experts, lies with the the release of PMI construction figures, with further statistics expected today. The pound is currently trading at €1.161 according to Bloomberg, at the time of writing.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk about potential more bad news to come today.
“The GBP/EUR exchange rate spent Monday fluctuating around €1.163.
“While the pound started the day on a fairly strong footing, it was undermined by the UK’s latest construction PMI, which slipped into contraction territory.
“The euro, meanwhile, was supported by a pick-up in producer price pressures in the Eurozone.
“If today’s UK services PMI also falls short of the mark the pound could dip back below €1.160.”
The Services Purchasing Managers’ Index (PMI) is a diffusion index which includes survey results provided by firms in the services sector, throughout the country.
The outcome will be made public at 9.30am today.
The index is expected to slip beneath the 50.0 level, at around 49.0, which would mean it too would slip into “contraction territory”.
It will be followed by a testimony from Mark Carney, Governor of the Bank of England, this afternoon, with his speech expected to address Brexit issues.
In previous weeks, Brexit has sent the pound to euro exchange rate on a rollercoaster journey of fluctuation.
Meanwhile, on Thursday, Express.co.uk reported how sterling had stormed to a 21-month high thanks to Brexit optimism.
It came after Prime Minister Theresa May had renewed confidence a no-deal Brexit could be avoided.
Should it occur, it would mean the UK would leave the EU with no specific plans, procedures or laws in place on how to proceed.
Previously, such a potential outcome has sent the pound to euro exchange rate plummeting.
It also sparked concern over the validity of millions of passports.