The pound to euro exchange rate experienced a dramatic slump last week but remained mostly unchanged yesterday, experts have said. This week experienced a “quiet” start but “stiff political headwinds” are still a great concern. Brexit continues to serve as a barometer for GBP's movement, with two eventualities poised to impact the currency. The possibility of Brexit Withdrawal Agreement passing in the first week of June combined with the chance a hardline Brexiteer replacing Prime Minister Theresa May are “dampening the chances of a prolonged pound rally,” experts warned.
Pound to euro exchange rate: GBP stabilises after dramatic slump - could Brexit rock it?
The pound could slide against the euro today following the release of the UK Treasury Committee inflation report hearings.
If the report is more pessimistic than expected, and doubts are raised about whether inflation will hit the BoE’s target, there could be sentiment in sterling’s slide.
The pound is currently trading at €1.140 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.
“Sterling traded largely unchanged against the euro on Monday, as FX markets got off to a quiet start to the week with no major economic releases or impactful news headlines," he said.
“However, stiff political headwinds remain, dampening the chances of a prolonged pound rally - namely the slim chances of the Brexit Withdrawal Agreement passing in the first week of June along with the possibility of a hardline Brexiteer replacing PM May in Number 10.
Pound to euro exchange rate experienced a dramatic slump last week but has remained mostly unchanged (Image: Getty Images)
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