Pound to euro exchange rate: Sterling may take the hit for ‘slump’ in retail before Easter

The pound has continually been under pressure ahead of the Easter Bank Holiday – and this could well be set to continue. Sterling is tipped to suffer in the wake of anticipated poor UK retail sales data, due to be released today, which could prove “pound negative.” It comes shortly ahead of a long weekend, where many Britons are expected to convert their cash to euros for sun-soaked mini-breaks. The pound is currently trading at €1.154 against the euro, according to Bloomberg, at the time of writing.

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

She said: “Below-forecast UK inflation data left the pound under pressure on Wednesday, with GBP/EUR left lingering around €1.153.

“Inflation held steady at 1.9 per cent on the year instead of picking up to 2.0 per cent.

“The euro, meanwhile, benefited from impressive trade data for the Eurozone.

“While we’re all gearing up for the four day Easter weekend, today’s UK retail sales data could still have an impact on the pound.

“Sales are believed to have slumped on the month in March, and signs of slowing consumer spending would be pound-negative.”

The statistics come after UK inflation and employment data was released earlier this week.

The pound to euro exchange rate has been suffering since the Brexit referendum, with consequent uncertainty only causing it to drift further.

Fears no deal Brexit – which remains a possibility on October 31 – have previously sent the pound plummeting.

UK Prime Minister Theresa May has secure an Article 50 Brexit extension, which means the UK will leave the EU on October 31.

Yet Labour leader Jermy Corbyn has poured cold water on notions of progress.

According to The Sun, he said: “We’ve put those cases very robustly to the Government and there’s no agreement as yet.

“The Government doesn’t appear to be shifting the red lines because they’ve got a big pressure in the Tory party that actually wants to turn this country into a deregulated low-tax society which will do a deal with Trump.

“I don’t want to do that.”

Yet there could be positive hope for travellers looking to convert cash ahead of the Easter break, amid the Brexit extension period, according to Michael Brown, senior analyst at Caxton FX.

He said of the repercussions of extending the process: “The granting of an extension may support the pound due to the avoidance of an imminent no-deal exit.”


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