The pound to euro exchange rate dropped slightly on Tuesday by around half a cent and the pound is unlikely to improve in the coming hours.
Sterling could still improve before the weekend, however, with the next run of UK figures due out on Friday
The pound is currently trading at €1.114 against the euro at 7.25am according to Bloomberg.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“The GBP/EUR exchange rate lost around half a cent on Tuesday, taking the pairing to €1.114.
“With no juicy data due for release from either the UK or Eurozone today, the pound is unlikely to recover losses against the euro in the hours ahead.
“The next big run of UK figures, including local growth data, is due out on Friday so we may see a flurry of movement before the weekend.”
The current exchange rate is the worst its been in over two weeks and has been put down to continued Brexit concerns.
The main worry among GBP traders is that the UK could face an economically turbulent ‘no-deal’ Brexit, both of which are considered undesirable.
Most recently, UK police chiefs have warned that a bad Brexit deal could jeopardise public safety as it would limit access to EU-wide databases and security powers.
In a letter addressed to Home Secretary Sajid Javid, the Association of Police and Crime Commissioners warned: “The UK and EU share a common and ever evolving threat picture.
“[In the event of no Brexit deal,] considerable additional resource would be required for policing to operate using non-EU tools and that such tools would be sub-optimal – potentially putting operational efficiency and public safety at risk.”
With UK institutions and agencies seemingly lining up to warn against the effects of a ‘no-deal’ Brexit, these latest comments have put even more pressure on UK negotiators to secure a favourable separation package.
Over in the Eurozone, yesterday’s German data was mixed but this didn’t prevent a slight rise in the euro-pound exchange rate.
Industrial output levels slowed by more than expected in June, but the trade balance reading for the same month has shown a larger surplus
Commenting on the former German industrial data, Alexander Krueger of Bankhaus Lampe said: “That’s not a great result but it could have been worse.
“In contrast to the first quarter, industrial production supported growth in the second
Looking ahead, the next economic data of note which could affect the pound euro exchange rate will be Thursday morning’s European Central Bank (ECB) economic bulletin.
This will provide a picture of Eurozone economic activity over recent months, as well as a forecast on how the single currency bloc could perform in the future.
If the general outlook is positive, then the euro could rise further against the pound.
The next UK data comes on Friday morning when GDP growth rate estimates will be published.
If they prove to be better than forecast, or even in line with expectations, this could give the pound a lift.
To get the best currency exchange rate, holidaymakers should not convert their foreign money as soon as they return. It could mean losing out if the current rates are at a low