It’s been a disappointing week for the UK currency, but the sharp rise in the exchange rate this morning could signal the end of the struggle.
The pound has jumped back to €1.15 after sinking to €1.14 on Friday.
Despite the increase, sterling still has a long climb ahead to reach monthly highs of €1.19.
The rebound for the pound against the euro comes in the wake of fresh polling data released yesterday.
One of the leading contributors to the falling exchange rate last week was the narrowing gap between Jeremy Corbyn and Theresa May in the polls.
Recent comments from Angela Merkel out of Germany and speculation over future decisions from the European Central Bank (ECB) have encouraged a buy-up of the single currency.
Inflation data released out of the EU on Wednesday provides the next major test for the euro.
The UK has a much quieter week ahead, with the release of manufacturing PMI on Thursday the main one to watch.
Last week saw the release of the UK’s growth data for the first quarter of the year.
GDP grew 0.2 per cent in the first three months of 2017, down from an initial estimate of 0.3 per cent, according to the Office for National Statistics (ONS).
Household consumption had fallen significantly, which pointed to families feeling the squeeze of higher inflation.
At the same time, the weaker pound has not led exporters to provide a boost to growth as hoped.
Ruth Gregory, UK economist at Capital Economics, said: “The second estimate of Q1 GDP presented a slightly weaker picture of the economy’s recent performance than previous numbers had suggested.
“But growth is likely to pick back up in the quarters ahead.”
