The pound to euro exchange rate had a slight shift in favour of the euro currency today, Friday 26 January.

Pound Sterling is converted to €1.1434, in Bloomberg figures at 7:20am this morning.

This is lower compared to yesterday, when the pound converted to €1.493.

Thursday’s figure represented a four month high for the pound.

pound to euro exchange rate gbp eur graph pictures video

Pound to euro exchange rate: GBP value has dropped slightly compared to yesterday

However, today’s figure is up compared to Friday last week, when the pound stood at €1.130.

The drop compared to yesterday comes after Mario Draghi, European Central Bank president, spoke about the euro in a speech yesterday.

He said inflation was on track for its 2pc target, which instilled confidence in the euro.

However, he added there would be “very few chances” for an interest rate hike, which limited this confidence.

pound to euro exchange rate gbp eur draghi

Pound to euro exchange rate: Draghi said yesterday an ECB interest rate hike was unlikely

On Wednesday, TorFX currency analyst Laura Parsons said, despite the pound “moving away from its best levels”, it may still “rally” later in the day.

“The GBP/EUR exchange rate moved away from its best levels on Tuesday despite encouraging UK public borrowing data as the German and Eurozone ZEW economic sentiment surveys impressed.

“All measures outperformed expectations, indicating that confidence in the bloc is improving despite political uncertainty in Germany.”

pound to euro exchange rate gbp eur graph pictures videoBloomberg

Pound to euro exchange rate: A Bloomberg graph shows pound has fallen slightly compared to yesterday

“However, GBP/EUR remains close to €1.140 and the pairing could rally later today if the UK’s average earnings data reveals a surprise uptick in wage growth.”

This data, she predicted, would tip the pound to euro exchange rate back in the pound’s favour.

“As it stands, weekly earnings both including and excluding bonuses is forecast to hold at previous levels

However, she added that: “A slightly higher result could prove pound-positive.”

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