Pound to euro exchange rate: GBP ‘edges up’ despite disappointing data and Brexit concern

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The pound to euro exchange rate has fluctuated throughout the week and yesterday was buoyed against the euro on new reports of a possible extension to Article 50 of Brexit – before a “weaker-than-expected” UK inflation data dampened sentiment. The pound is currently trading at €1.140 against the euro, according to Bloomberg at the time of writing. Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures. “The GBP/EUR exchange rate was left trading in the region of €1.139 on Wednesday,” Parsons said.

“The pairing managed to edge up on the day’s opening levels despite weaker-than-expected UK inflation data. UK inflation came in at 1.8 per cent, sliding from 2.1 per cent.

“However, the euro also came under pressure as the Eurozone’s latest industrial production report showed a massive slump in output.

“The -4.2 per cent decline was the worst since the financial crisis and left the euro weaker across the board.

“In the hours ahead the GBP/EUR exchange rate could fluctuate in response to the Eurozone’s Q4 growth data, but movement may be limited ahead of the evening’s Brexit parliamentary debate.”

The pound benefited from a boost this week after the UK’s senior Brexit negotiator Olly Robbins was reported by ITV to have been overheard in a Brussels bar.

Robbins allegedly claimed Prime Minister Theresa May intended to wait until the end of March before confronting MPs with a choice between her deal or a lengthy Brexit delay.

Justin Onuekwusi, a fund manager at Legal and General Investment Management, believes that while the chances of a no-deal Brexit had augmented slightly recently due to continued parliamentary deadlock, it is clear neither MPs or the European Union favour that outcome. 

He said: “You probably have to be at the edge of the cliff looking over before a deal is done.”

Onuekwusi added Robbins’ comments appeared to imply the Prime Minister could be leaning towards delaying the 29 March deadline – an option she has long rejected.

The Commons is set for another Brexit vote today. Up to 80 Tory backbenchers are threatening to refuse to back the Prime Minister in the vote on a Government motion endorsing her push for a revamped Brexit deal.

The MPs allied to the European Research Group, chaired by senior Tory Jacob Rees-Mogg, claim the motion effectively rules out a no-deal Brexit.

Several Cabinet ministers were also understood to be considering quitting if a lengthy delay in the withdrawal process is agreed.

“It would be very difficult to stay in the Government if anything other than a short extension is adopted,” said one Cabinet source.

or those concerned about how Brexit will affect travel. Martin Lewis has shared his top travel advice for holidaymakers looking to head abroad after Brexit. /travel/articles/1085511/martin-lewis-holidays-brexit-news-passport-travel-insurance-ehic-card

The Money Saving Expert said that three key areas to watch out for are passports, travel insurance and EHIC cards.

Should the UK quit the European Union without a deal, you need to have at least six months left on your passport from the date of your arrival to an EU country.

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