PUBLISHED: 08:02, Wed, Sep 2, 2020 | UPDATED: 09:31, Wed, Sep 2, 2020
The pound managed to claw back some of its strength yesterday, settling just above the 1.12 handle. Sterling hit its best levels since June 10 yesterday. With no major announcements anticipated today, as the Eurozone remains mostly quiet, GBP is likely to begin September in a positive light.
However, it’s unclear whether this upward trend will continue or whether its brief success will be short-lived.
The pound is currently trading at a rate of 1.237 against the euro according to Bloomberg at the time of writing.
This is above yesterday’s rate of 1.1186, which was below the 1.12 handle.
Michael Brown, Currency Expert at Caxton FX, spoke to Express.co.uk to provide exclusive insight into the current exchange rate.
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Pound to euro exchange rate: GBP rises to ‘best levels’ since June due to weakened dollar (Image: EXPRESS)
Pound to euro exchange rate: The pound is currently trading at a rate of 1.237 against the euro (Image: BLOOMBERG)
He said: “Sterling rose to its best levels since June 10 against the common currency yesterday, buoyed by a broadly weaker dollar, and ECB jawboning of the euro, to gain just over 0.5 percent on the day.
“Today, with a quiet calendar in store, attention will be on whether the pair can maintain yesterday’s momentum, or whether trading above the 1.12 handle will be a mere flash in the pan.”
George Vessey, UK Currency Strategist at Western Union Business Solutions said the dollar is “capping” the pound to euro exchange rate from extending higher.
He said: “Despite plenty of good news being priced into the euro and speculative positioning being stretched, the dominant