The pound will be impacted by a series of “key events” this week, as the trading week opens on Monday. Sterling held steady on Friday against a weakening euro, with figures staying the same over the weekend. As a new week in the currency markets opens, change could be on the horizon according to finance experts. The pound is currently trading at €1.158 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures and the fluctuations set to come.
He said: “Sterling remained within a familiar range against the euro on Friday, with little in the way of news or data flow to spark volatility.
“Looking to the week ahead, there are plenty of key events on the horizon which should pique interest.
“Markets will be looking towards the monthly PMI surveys for an early gauge of the UK economy’s performance in addition to Thursday’s Bank of England meeting, where focus will fall on the BoE’s latest economic forecasts in addition to a possible hawkish tilt in light of the tight UK labour market.
“Finally, markets will remain on alert for any Brexit-related headlines, especially stemming from the seemingly stalled cross-party consensus talks.”
The latter has already had a tangible impact on the pound to euro exchange rate prior to the agreement of Article 50, which will see the UK leave the EU on October 31.
The consequent worry over passport validity, related to a no deal exit from the EU and the amount of months travellers would need to travel, also served to weaken the pound.
Meanwhile, Article 50 negotiation talks and the prospect of a Brexit deal saw currency strengthened.
Previously, Labour leader Jeremy Corbyn has stated talks with UK Prime Minister, Theresa May, have stalled, yet this remains to be seen.
Laura Parsons, currency analyst for TorFX, added of today’s rate: “The pound has edged up against its rivals this morning, leaving the GBP/EUR exchange rate trading just below €1.16.
“Today movement in the pairing could be caused by a speech from Bank of England (BoE) Governor Mark Carney and Eurozone confidence figures.
“A decline in confidence could help Sterling extend gains against the euro.”
Meanwhile, the pound is down 14 per cent against the euro since the Brexit referendum.
Nigel Green, founder and chief executive of deVere Group has said sterling could soar back to pre-referendum levels should Britain and the European Union reach a deal.
He said: “Nothing has of any substance been achieved and everything remains up in the air.
“The longer the Brexit process takes, and it is clearly taking a long time, the closer the final relationship between the UK and the EU will be.”
He added: “When Brexit is finally delivered, investors are advised to be on the watch for a rally in the pound, UK stocks and a spurt in economic activity as sidelined household and business spending kicks in.”