GBP is buying €1.138 after rising slightly from €1.136 yesterday. 

The exchange rate is performing well above weekly lows of €1.131 on Wednesday. 

But the pound remains highly volatile to the release of the Bank of England’s financial stability report. 

At 10.30am BoE Governor Mark Carney will hold a press conference to reveal the results of the bi-annual meeting. 

Pound euro exchange rate brexit

Pound euro exchange rate – sterling is holding its ground ahead of a BoE report

If the BoE chief is dovish on the subject of monetary policy (again) the pound could be pressured lower

Laura Parsons

If his recommendations on monetary policy from last week’s Financial Policy Committee meeting are positive, sterling will likely spike against the single currency. 

But any signs of tightening will have the opposite effect. 

Laura Parsons, currency analyst from TorFX, said: “If the BoE chief is dovish on the subject of monetary policy (again) the pound could be pressured lower.”

Also standing to affect the exchange rate today are any further responses to Theresa May’s proposals on Brexit. 

Pound euro exchange rate brexitXE

Pound euro exchange rate – sterling is buying €1.14

The Prime Minister revealed her first offer at a dinner on Thursday in Brussels during the EU summit. 

Mrs May wants a ”reciprocal” agreement on the rights of UK citizens in EU member states.

She said: “We want certainty. I know there has been anxiety.

“Today I want to put that anxiety to rest I want to reassure people under the these plans no EU citizen legally in the UK will not be asked to leave.

“We want you to stay. I have always been clear that I want to protect their rights.”

Pound euro exchange rate brexit

Pound euro exchange rate – sterling remains volatile to BoE Governor Mark Carney’s financial update

Ms Parsons said: “The news that the Conservatives finally reached an agreement with the Democratic Unionist Party (DUP) lent the pound a little support on Monday, with the GBP/EUR exchange rate achieving a high of €1.139. 

“Although Prime Minister Theresa May’s position remains slightly tenuous, this development did remove one layer of political uncertainty. 

“However, the pound’s gains against the euro were limited in the face of positive data from Germany and a mixed response to PM Theresa May’s post-Brexit offer to EU citizens. 

“May told the Commons that any deal on the future legal status of EU citizens living in the UK was dependent on a reciprocal deal being offered to UK nationals living in EU nations.”

Source of Travel News

SIGNUP AND GET ACCESS TO EXCLUSIVE TRAVEL OFFERS!
%d bloggers like this: