Pound to euro exchange rate: Sterling ‘unlikely to bounce back’ as it plummets AGAIN
THE POUND has fallen against the euro again today following a disappointing week after an 11-month high. UK inflation rates hitting a year-long low have contributed to the exchange rate dropping below 1.140.
It is currently trading at £1.139 as of this morning, a further drop from yesterday’s figures.
Last week the exchange rate saw highs of 1.159 yet has struggled to retain it after a number of disappointing UK figures.
UK inflation rates were the lowest in a year in March, according to the Office for National Statistics (ONS) after falling from 2.7 per cent to 2.5 per cent.
This has since affected interest rates which were meant to increase next month.
Currency analyst Laura Parsons from TorFx revealed some of the reasons behind the pound's drop.
She explained to Express.co.uk: “The GBP/EUR exchange rate moved further away from its recent highs on Thursday as the UK’s retail sales data fell short of forecasts.
“The figures came hot on the heels of disappointing inflation data and added to concerns that the Bank of England (BoE) might refrain from increasing interest rates next month.
Ms Parsons also remarked on the movement of the pound for this weekend.
She said: “The pound is unlikely to bounce back before the weekend unless today’s speech from BoE official Michael Saunders is particularly hawkish.”