Pound to euro exchange rate: GDP to EUR struggles at 1.124
Rates have been low, as the euro is stronger thanks to the weakness in the US dollar.
However, it is yet to be seen is this will manifest. In fact, the pound fell slightly in the past 24 hours from 1.126 to 1.124.
TorFX currency analyst Laura Parsons said: “The GBP/EUR exchange rate struggled on Monday as the euro remained broadly stronger as a result of US dollar weakness.
“The pound clung to the day’s opening level of €1.124 despite solid Rightmove house price data.
“However, GBP/EUR volatility could occur today on the back of the release of inflation data for both the UK and Germany.
“The UK’s CPI report is forecast to show a slight dip in consumer price pressures.”
According to the expert, the Bank of England may well choose to delay any action on interest rates, meaning the pound will suffer.
Ms Parsons added: “As declining inflation might encourage the Bank of England (BoE) to maintain its wait-and-see attitude to interest rate hikes, such a result could send the pound lower.
“Germany’s inflation figures are expected to remain at previous estimates, but any deviation from this may be enough to spark EUR fluctuations.”
Last week, comments from Sadiq Khan affected the pound, with Laura saying he “undermined” British currency.
She said: “The pound, meanwhile, was undermined by London Mayor Sadiq Khan, who offered a fresh warning over the potential negative impact of a no-deal Brexit scenario.”
The Mayor Sadiq Khan has also caused outrage as protesters claimed he should be arrested after this Brexit speech.
Sadiq Khan’s Brexit speech saw the Labour Party member mock Trump’s “very stable genius” comments.
Khan said: “It is a pleasure to be here even though we were distracted by the actions of what some would call very stable geniuses.”