Pound to euro exchange rate has faired badly over the end of last weekend and the weekend, thanks to a number of factors.
The pound has fallen from €1.120 to lows of €1.105 – a drop of almost one per cent.
Experts point to various causes for this plummet in the pounds prosperity, some of which are linked to Brexit.
TorFX currency analyst Laura Parsons said: “The BoE’s decision to cut growth forecasts for this year and next contributed to the pound’s losses, as did Governor Mark Carney’s comments about Brexit holding back investment.”
She said: “After the rate decision the GBP/EUR exchange rate dropped by almost 1%, falling from highs of €1.120 to lows of €1.105.
“Before the weekend German factory order data and the Eurozone’s retail PMI could inspire more GBP/EUR movement.
“Positive data from the currency bloc would send the pound lower still.”
This is not positive news, and the Bank of England’s recent actions have not been helpful for the pound, Laura claimed.
She said: “The poor pound received a bit of a battering as the Bank of England’s (BoE) ‘Super Thursday’ of announcements turned sour.
“The central bank left interest rates on hold, with the Monetary Policy Committee voting 6-2 in favour of leaving borrowing costs unchanged.”
On Thursday the exchange rate held steady at €1.116 from the day before.
The euro has been struggling thanks to the tensions between the Spanish government and the Catalonia region.
However, the pound did not benefit from this dip in the euro.
On Thursday TorFX currency analyst Laura Parsons said: “Easing concerns about the Catalan independence crisis and ongoing Brexit woes kept the GBP/EUR exchange rate under pressure on Wednesday.
“The pound remains trading in the region of €1.116 and could ease lower in the hours ahead if the Eurozone’s industrial production figures impress.
“With UK data in short supply for the rest of the week, developments in the fifth round of Brexit negotiations are likely to be the main cause of Sterling shifts.”
