The pound is up against the euro, according to figures correct at 7:15am this morning.
Sterling now converts to €1.1341 against the euro, a slight increase compared to yesterday.
Yesterday morning the pound was trading at €1.133 against the euro, after dropping from the previous day’s figures of €1.137.
The slight rise comes despite yesterday’s announcement of a rising inflation rate, which can often have a negative effect on a country’s currency exchange rate.
According to the Office for National Statistics (ONS), UK inflation has risen to an almost six-year high of 3.1 per cent, it was announced.
While the pound achieved a modest gain yesterday, it is also a fall compared to last week, when the exchange rate gained a six-month high following Theresa May’s Brexit negotiation progress in Brussels.
EU leaders are also due to meet in Brussels for a summit tomorrow, December 14 to 15, which may have a further impact on the pound’s value.
It is hoped the pound may make further gains if more progress is made on a Brexit deal, inspiring confidence in the currency.
Laura Parsons, currency analyst at TorFX, commented on the exchange rate and the pound’s “modest gain” and its significance amid Eurozone figures.
“While the pound struggled to hold its own against most the majors on Tuesday, it did at least record a modest gain of 0.3% against the euro.
“Sterling failed to derive much benefit from the news that inflation had unexpectedly risen to 3.1% in November.
“But the GBP/EUR exchange rate still edged to a high of €1.137 as the ZEW economic sentiment surveys for Germany and the Eurozone both declined.
“The confidence measure for Germany dropped from 18.7 to 17.4, while the index for the Eurozone as a whole slipped to 29.0 from 30.9.”
Laura was hopeful for the pound today is UK employment figures proved as positive as predicted.
“The pound could extend gains against the euro today if the UK’s latest employment figures show the uptick in average earnings forecast.
“Growth in average earnings including bonuses is forecast to come in at 2.5%, up from 2.2%.”
