The pound is trading against the euro at 1.1375 this morning according to the latest Bloomberg figures, this is a slight rise from yesterday’s rate of 1.1355.
The pound to euro has seen a recent rise following a four-month lull after prolonged Brexit talks continued to divide UK and EU leaders.
Laura Parsons, currency analyst for TorFX explained that this the GBP/EU rate this week is expecting to be “anything but dull”.
The Bank of England (BoE) is expected to ‘hike’ interest rates in May, a decision that Laura explained may shoot the sterling higher still.
As she prediction, this week has already seen a lot of movement for the pound as the exchange rate continues to rise.
Laura explained that after an interesting week in UK news, the GBP exchange rates “rally across the board”.
After months of uncertainty surrounding the position of the UK after Brexit, an agreement looks as though it might have been met.
“Sterling’s strength came from a positive reception to news of a draft UK-EU Brexit treaty, which indicated that both sides were in agreement on several major issues,” said Laura.
The withdrawal terms are looking to be “closer than ever”
The UK and the EU are have agreed on a “large part” on the treaty
The UK and the EU are have agreed on a “large part” on the treaty that outlines the UK’s “orderly withdrawal” from the EU.
After extensive talks in Brussels over the weekend, Mr Davis and Mr Barnier have agreed on blueprints for the 21-month “implementation period”.
David Davis, Conservative MP said: “The deal we have struck should give us confidence that a good deal for the United Kingdom and the European Union is closer than ever before.”
Chief EU negotiator Michel Barnier went on to add: “We are not at the end of the road and there is a lot of work still to be done on important subjects.”
Sterling’s rise follows a positive reception to news of a draft UK-EU Brexit treaty
The pound is trading against the euro at 1.1375 this morning
The deal agreed sates that Britain will be free of EU rules starting from the end of December 2010 with the Government free to sign a new trade deal next year.
As a result of the treaty agreement news, Laura highlighted: “The GBP/EUR exchange rate advanced above €1.140, but the pound could pull back today if UK inflation is shown to have slowed significantly.”
Investors are being warned to keep a close eye on inflation if this continues to slow Laura has warned the pound may start to dip once more.
The latest UK inflation and employment figures are also due to be realised later this week and these too may impact the pound.