The pound to euro exchange rate managed to make gains yesterday for the first time in four trading days. Yesterday’s improvement comes as the euro was weakened by below-forecast inflation figures. Disappointing construction PMI also did not prevent GBP’s amelioration on Tuesday. More data is out today, however, with experts predicting any pound rallies will be “short-lived.”
Pound to euro exchange rate: GBP finally makes gains - but will it drop again today?
The pound is currently trading at €1.129 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 recorded its first daily gain in four trading days since last Wednesday against the single currency yesterday, as the pound benefitted from a broadly weaker euro,” said Brown.
“The euro lost ground after below-forecast inflation figures, a data point which will likely provide the European Central Bank (ECB) with a further headache ahead of Thursday’s monetary policy decision.”
Tomorrow will see the ECB announce its latest interest rate decision, leaving euro traders cautious while worries are rising that the eurozone economy is weakening.
Erik Nielsen, Chief Economist at the Italian lender UniCredit, sounded a note of warning, saying: “With substantial risks to the economic outlook and markets… sending inflation expectations scarily low, bold monetary action is needed.”
Pound to euro exchange rate managed to make gains yesterday for the first time in four trading days (Image: Getty Images)
Brown continued: “The pound’s gains yesterday came despite construction PMI