The pound has dropped against the euro for the second day running.
Today the GBP currency converts to €1.278.
This is a drop from yesterday, when it converted to €1.1327.
The pound is below the €1.3 mark for the first time since Monday, when it converted to €1.126.
Despite today’s drop, there is hope for the pound following last week’s interest rate hike.
Bank of England increased the rate from 0.25 per cent to 0.5 per cent.
This is a sign of economic confidence in the Sterling currency.
However, Bank of England governor Mark Carney warned it may be the last rise for a while.
Laura Parsons, currency analyst at TorFx, said the pound is “under pressure” as the Prime Minister, Theresa May, has a cabinet reshuffle.
“Chaos in PM Theresa May’s cabinet has been keeping the pound under pressure this week amid concerns all the upheaval could derail Brexit negotiations.”
In the past week alone there have been two cabinet reshuffles, as Priti Patel resigned as International Development security and Sir Michael Fallon as defence secretary.
They were replaced by Penny Mordant and Gavin Williamson respectively.
However, Laura said she is positive about the influence of new UK data, including yesterday’s manufacturing industry report.
“Today there’s finally some UK data on the calendar with the potential to give Sterling a lift.
“The UK’s trade deficit is forecast to narrow, and industrial production is believed to have picked up on both the month and year.
“Such results could bolster the pound heading into the weekend.”
