The pound to euro exchange rate has shifted in favour of the EUR currency today, Friday 2 February.
Pound Sterling today converts to €1.1403 in Bloomberg figures at 7:20am this morning.
This is a rise compared to yesterday, when the pound was converting to €1.1437.
Earlier, this week, sterling stood at €1.1355 – however, it was boosted by comments from Bank of England governor Mark Carney.
TorFX currency analyst Laura Parsons said the drop in Sterling’s value compared to yesterday was down to the impact of UK manufacturing data for January.
She said: “Disappointing UK manufacturing data and fresh rumours of divisions in the Conservative party over Brexit sent the pound slightly lower against the euro on Thursday.
“The GBP/EUR exchange rate hit a low of €1.139 despite European Central Bank (ECB) economist Peter Praet asserting that stimulus measures need to remain in place in order to counter persistently weak inflation in the Eurozone.”
However, while the pound fell, she said the currency still proved “resilient” in the face of the disappointing data – and could look forward a more positive services PMI next week.
“Sterling proved resilient against other currency rivals, however, despite the rate of UK manufacturing output slowing unexpectedly in January.
“Today’s UK construction PMI is also expected to dip.
“While a surprisingly upbeat result might lend the pound a little support, the construction sector accounts for less than 10 per cent of total GDP, so the impact of the data will be limited.
“Investors will instead be looking ahead to next week’s more influential services PMI.”
Yesterday, Laura said Sterling’s power was “limited” by the leak of a post Brexit trade deal.
“The GBP/EUR exchange rate remained trading in the region of €1.140 on Wednesday.
“Demand for Sterling was limited by reports that EU officials rejected a blueprint for a post Brexit trade deal for the financial services sector.
Meanwhile, she added: “The euro benefited from the news that Eurozone inflation dipped by less-than-expected.”
