Connection Information

To perform the requested action, WordPress needs to access your web server. Please enter your FTP credentials to proceed. If you do not remember your credentials, you should contact your web host.

Connection Type

Pound to euro exchange rate: Sterling slips as Brexit deal fears mount afresh | Travel News | Travel
Published On: Fri, Oct 12th, 2018

Pound to euro exchange rate: Sterling slips as Brexit deal fears mount afresh | Travel News | Travel


The pound relinquished its grip on previous gains and lost almost half a cent today.

The lower levels came after speculation that the Irish border issue could prevent a Brexit deal being reached.

Experts have warned German inflation data could send the exchange rate dipping even further today.

The pound is currently trading at €1.142 against the euro, according to Bloomberg.

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

“The pound’s winning streak came to an end on Thursday, with GBP/EUR losing almost half a cent on speculation that the Irish border issue could prevent a Brexit deal being reached.

“GBP/EUR dipped below €1.140 and could extend losses today if Germany’s inflation data shows an increase in consumer price pressures.”

Tension is growing in both the Conservative party Democratic Unionist Party (DUP) regarding the final Brexit deal.

The DUP has said it could withdraw its support for the government if it disagrees with the final plan.

DUP leader Arlene Foster warned she would refuse any deal which created new barriers between Northern Ireland and the rest of the UK.

Given Prime Minister Theresa May needs the support of the DUP to maintain her slim parliamentary majority, this latest Brexit stumbling block could potentially see the government collapse if the DUP isn’t appeased.

However, hardliners within the Conservatives could revolt if May bends under pressure from the DUP and therefore risking derailing a possible Brexit deal.

This uncertain state of affairs has lead investors to err on the side of caution towards the pound.

Chief FX strategist at Mizuho Securities cautioned: “We can’t be too optimistic about the Brexit process.

“Even if a deal can be struck at an anticipated special EU summit in November, it has to get through the British Parliament.”

Looking ahead, the pound to euro exchange rate is likely to be driven by the release of the Eurozone’s latest industrial production figures.

The euro could swing higher if production growth has rebounded from -0.8 per cent to 0.4 per cent in August as forecast.

Meanwhile, a lull in UK data means Brexit is likely to remain the dominant force behind the pound on Friday.

Any positive progress in negotiations likely to help boost sterling sentiment.

Holidaymakers looking to escape the cold should think of heading to Turkey – the pound is strong against the Turkish lira meaning holidays to Turkey can be grabbed for a bargain



Source link

About the Author

-

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Pound to euro exchange rate: Sterling slips as Brexit deal fears mount afresh | Travel News | Travel