Pound to euro exchange rate: Sterling at week long HIGH and may ‘lift’ again

The pound to euro exchange rate moved in favour of the Sterling currency today, Thursday 1 February.

Pound Sterling is converted to €1.1437, in Bloomberg figures at 7:00am this morning.

This is a rise compared to yesterday, when the pound was converting to €1.1406.

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 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.” 

However, Laura said it could be given a “lift” with the release of the UK manufacturing PMI today.

“Today’s UK manufacturing PMI could give Sterling a lift if it shows that manufacturing output got off to a good start to the year in January.”

Yesterday, Laura said the pound had “pushed back”.

“The GBP/EUR exchange rate initially faltered on Tuesday in response to a leaked government report detailing the negative impact of Brexit on UK growth.

However, she said it had made a recovery: "The pairing was later able to push back above €1.140.”

“While demand for the euro was undermined by a disappointing German inflation report, the pound was lifted by bullish comments from Bank of England (BoE) Governor Mark Carney.”

She added that the pound had further potential today following the Eurozone inflation reports.

At the beginning of the week, she said the week held "positive potential" for GBP.