The pound weighed in against the euro at 1.1460 this morning according to the latest Bloomberg figures.
This figure indicates a slight dip from the exchange rate yesterday that saw the pound trading at 1.1468.
The GBP/EUR exchange rate has been in a state of flux over the last few weeks as the ‘Beast from the East” swept across the UK causing a fall in consumer spending.
Despite a fall in retail sales reported by the Bank of England citing “some evidence of financial distress”, the pound managed to stabilise over the Easter weekend.
Speaking to the Express.co.uk, currency analyst at TorFX, Laura Parsons, outlined her predictions for the remainder of the week.
She said: “The GBP/EUR exchange rate remained trading in the region of €1.145 on Wednesday despite the UK’s construction PMI revealing a decline in output.
“Although the Eurozone’s unemployment rate fell to a fresh five-year low, the euro failed to see much benefit in light of mixed inflation data for the currency bloc.
“While non-core inflation increased to 1.4 per cent, the core measure remained at 1.0 per cent instead of rising to 1.1 per cent as expected.”
Economics are keeping a close eye on the Eurozone’s sales data that is expected to be announced soon.
Laura explained: “Today’s UK services PMI and the Eurozone’s retail sales report could both inspire volatility in the pound to euro exchange rate.”
She went on to add: “The UK’s services sector accounts for over 70 per cent of total GDP, so if output declines as expected it would put Sterling under pressure.
“Conversely, the Eurozone’s retail sales report is projected to show a euro-positive rebound in monthly activity.”
According to Eurostat, the Eurozone unemployment rate dropped to 8.5 per cent in February this year.
A drop from 8.6 per cent in January and 9.7 per cent in February 2017.
This is the lowest recorded rate in Eurozone unemployment since December 2008.
Last week saw a similar exchange rate in the pound with the GBP/EUR trading at 1.144 on Wednesday.
Despite Germany’s lower that forecast data, the pound managed to remain steady.
Laura explained: “Although disappointing data from Germany reduced demand for the euro on Tuesday, the pound’s gains against the common currency were limited amid an absence of pertinent news from the UK.”
She went on to add “Germany’s Gfk consumer confidence index is also forecast to show a decline in sentiment, a result which could give the pound more impetus to climb against the euro.”
Anyone looking to exchange today can expect a rate of £1.1165 from the Post Office when trading £400 and over.
