The pound to euro exchange rate made for grim reading on Tuesday with figures “falling”, and more dismal results forecast for today. Sterling was impacted by the release of PMI services and construction statistics this week which left currency fluctuating. This was followed by a speech by Mark Carney, Bank of England Governor. It is a marked contrast from this time last week, when the pound was on the brink of a two year high.
The pound is currently trading at €1.162 at the time of writing, according to Bloomberg.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk about the downturn.
She said: “Fresh Brexit concerns left the pound struggling on Tuesday, with the GBP/EUR exchange rate briefly falling below €1.160.
“The UK’s Services PMI failed to give the pound a lift despite the gauge of output rising from 50.1 to 51.3, while the euro was supported by an unexpected surge in retail sales in the Eurozone.
“In the hours ahead GBP/EUR fluctuations could be inspired by Germany’s construction PMI and the OECD’s economic outlook.”
Meanwhile, she touched on the impact of Brexit ahead of key votes next week.
She suggested this could further impact the exchange rate before Prime Minister Theresa May offers MPs in the House of Commons a meaningful vote on her Brexit divorce deal.
Laura added: “Any new Brexit headlines will also be of interest as the next meaningful vote in Parliament looms.
In previous weeks, Brexit has sent the pound to euro exchange rate on a rollercoaster journey of fluctuation.
On Thursday, Express.co.uk reported how sterling had stormed to a 21-month high thanks to Brexit optimism.
It came after Mrs 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.
Mrs May is set to fly to Brussels on Sunday to seal her Brexit deal with European Commission President, Jean Claude Juncker.