The pound to euro exchange rate “drifted” lower yesterday – but this could be reversed on a fresh day of trading. Experts think sterling could “recover ground” today, courtesy of the UK’s inflation report. The document, published every quarter, sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions. Prior to its release, in the midst of ongoing Brexit negotiations, 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, explained the reason why the pound could see a benefit from the forecast.
She told Express.co.uk: “The GBP/EUR exchange rate spent Tuesday edging lower, with the pairing eventually drifting to €1.154.
“The pound failed to benefit from the news that UK wage growth increased in the three months to February amid reports that the Brexit talks between Theresa May and Jeremy Corbyn have stalled.
“The euro, meanwhile, benefited from an improvement in the ZEW confidence data.
“However, GBP/EUR could recover ground today if the UK’s inflation report shows an increase in consumer price pressures.”
Pound to euro: The pound could 'recover' lost ground today (Image: Getty)
Earlier this week, Express.co.uk reported how the pound is “under pressure” courtesy of the impact of Brexit on the exchange rate.
UK Prime Minister Theresa May has secure an
