The pound is currently trading against the euro at €1.1279, which is up from yesterday morning’s €1.1267.
Bank of England governor Mark Carney and other officials were up before MPs at the Treasury Select Committee on Wednesday discussing bank stress tests as well as Brexit.
But despite the discussions sterling failed to benefit from a three-week low.
It now appears sterling is beginning to bounce back after a consistent dip this week.
Pound euro exchange rate: Sterling has begun to make a recovery
The pound is currently trading against the euro at €1.1275, which is up from yesterday morning’s €1.1267
The fall in the rate up until now can be attributed to the recent comments made by Michel Barnier, Brexit chief negotiator.
He stated recently that Britain must “face the consequences” after choosing to the leave the EU, after Prime Minister Theresa May stated she would deliver a “red white and blue Brexit”.
His comments let to uncertainty regarding trade deals for the UK.
According to Laura Parsons, currency analyst at TorFX, Wednesday was fairly dull for pound exchange rates, with GBP/EUR fluctuating around a three-week low, despite Carney discussing Brexit.
Pound euro exchange rate: Sterling is currently trading against the euro at €1.1279
Pound euro exchange rate: Sterling traded at a three-week low this week
She said: “Although Bank of England (BoE) Governor Mark Carney refrained from discussing monetary policy in yesterday’s [Thursday] speech to parliament, he did talk about a Brexit deal for the financial services sector.”
Despite recent commentary from the EU to the contrary, Carney asserted that special financial services trade deal could be implemented.
Laura added: “Such a deal would be pound positive if it was actually on the table, but as the odds are stacked against it Sterling failed to benefit from the remarks.
“With an overnight report showing a decline in UK consumer sentiment, GBP/EUR has been left trading in the region of €1.125.”
Pound euro exchange rate: The fall in rate can be attributed to Michel Barnier’s recent comments
Michel Barnier’s comments came on Tuesday, and the EU’s chief Brexit negotiator asserted that is the UK left the single market its financial sector would not receive preferential treatment, and London would lose its financial services passport.
Laura commented on the news on Wednesday: “The pound held losses despite the German IFO business climate and expectations reports showing a decline in sentiment.
“Today’s speech from Bank of England (BoE) Governor Mark Carney has the potential to drive Sterling lower still.
“If Carney adopts a cautious tone on the subject of Brexit and its potential implications, the prospect of borrowing costs remaining on hold for longer would leave Sterling struggling.
“Conversely, upbeat commentary from Carney would give the pound a mid-week lift.”