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Pound to euro exchange rate: Pound to ‘push higher’ if UK inflation rates rise amid Brexit


The pound to euro exchange rate could bring glimmer of positivity for traders as the mid-point of the week arrives. Sterling is set to enjoy a small boost, according to finance experts, who speculate it will “push higher” after a disappointing couple of days. As predicted, currency has been at the mercy of ongoing Brexit debates. The UK was set to leave the EU on March 29, yet Prime Minister Theresa May has confirmed she will write to the EU and request an Article 50 extension, to delay the process.

Amid the confusion the pound is currently trading at €1.167 according to Bloomberg, at the time of writing.

Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk about the fluctuating currency rates.

She said: “The pound spent Tuesday fluctuating as the prospect of a third meaningful vote on PM Theresa May’s Brexit deal was ruled out.

“House of Commons Speaker John Bercow advised that the deal would need to see substantial change before it could be put to Parliament again.”

As well as the UK’s political developments, it appears UK-based employment data is also affecting the exchange rate.

Laura added: “The latest batch of swirling Brexit uncertainty prevented the pound from benefiting from better-than-forecast UK jobs data.

“The UK unemployment rate fell to a 44-year low, and growth in average earnings including bonuses didn’t decline by as much as expected.

“GBP/EUR was fluctuating around €1.169 yesterday, but could push slightly higher over the course of today if UK inflation rises.”

The pound to euro exchange rate has seen huge fluctuations as the detailed, passionate Brexit debates have played out.

Fears of a no deal Brexit – which would have seen the UK leave the EU with no plans in place of how to go forward – previously sent the pound to euro exchange rate plummeting.

Last month, Express.co.uk reported how millions could potentially be rendered invalid in light of a no deal Brexit.

The UK Passport office’s official site subsequently crashed as worried travellers sought to make sure their document was fit for travel.

House of Commons speaker Mr Bercow added further fuel to the debate yesterday when he refused a third meaningful vote on PM May’s same Brexit deal, voted down last week.

Yet it is believed if Mrs May secures the backing of the EU for an Article 50 extension, this may change.

It remains to be seen what impact the day’s political developments will have on the economy.



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