The pound was left “under pressure” yesterday when all UK economic releases proved to be disappointing. GBP’s losses against the euro were not as significant as against the dollar, however. Change could be afoot today when Bank of England (BoE) Governor Mark Carney makes his speech, experts have said. The pound – also at the mercy of Brexit changes – 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.
“Less-than-impressive UK growth data left the pound under pressure on Monday. The latest GDP report showed an unexpected contraction of -0.4 per cent on the month in December.
“The year-on-year figure for the fourth quarter of 2018 also came in at 1.3 per cent instead of the 1.4 per cent expected.
“The report left Sterling 0.6 per cent weaker against the US dollar. While the GBP/EUR loses were less significant, the pound was left fluctuating on the cusp of €1.140.
“While there’s no UK data on the cards today, a speech by Bank of England (BoE) Governor Mark Carney could prompt some movement in GBP.”
Yesterday, the UK 2018 Q4 GDP figure revealed a slip to 0.2 per cent growth, down from 0.6 per cent in the previous quarter.
Experts were quick to blame the slowdown on Brexit anxieties, along with global trade tensions and weakness in the Eurozone.
UK Manufacturing production for December also showed disappointing results, with production contracting by -2.1 per cent, further diminishing sentiment in the UK economic outlook.
“The start of the week has been miserable for the pound with all UK economic releases coming in red this morning. GDP figures particularly stand out showing that the UK economy shrunk in December, though looking only at one month can be dangerous due to volatility,” Hamish Muress, currency analyst at OFX, said.
“The week won’t be getting any easier for currency traders and anyone exposed to the pound… the true cause of this, Brexit, returns to the fore once again on Thursday.
“As things stand the pound’s only hope to finish the week above where it started may come from Yvette Cooper’s possible amendment to avoid a no-deal Brexit scenario.”
Yesterday, Prime Minister Theresa May responded to opposition leader Jeremy Corbyn, who had written a letter setting out his demands for a Brexit deal.
While May did not outright reject any of his five conditions, she responded: “I am not clear why you believe it would be preferable to seek a say in future EU trade deals rather than the ability to strike our own deals?”
For holidaymakers heading to the EU, Money Saving Expert Martin Lewis has revealed the three things you must do before Brexit.
Three key areas are passports, travel insurance and EHIC cards, Lewis explained to ITV audiences on This Morning.
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.