STERLING JOB Pound to euro exchange rate – sterling has slight dip but still performing strong again
Value of the pound falls back slightly but sterling is still keeping up its strength alongside the healthy euro.
Sterling has been helped in recent weeks by a lack of bad news around Brexit, analysts say.
The pound had dipped to under 1.08 euros last August but has made steady gains since and peaked at 1.15 on February 1, 2018 - the highest in seven months.
It was the strongest the pound has been since hitting 1.16 euros on June 8, 2017.
The pound was labelled the best performing currency of 2017 and it had a flying start to 2018 and looks set to surge to higher levels.
Analysts said Sterling has been sold off this week as some traders could not resist cashing in on recent strong gains.
Despite making gains throughout January and February, Sterling is currently hovering around the levels it started 2018 with.
How is Brexit affecting currency rates?
There is continuing uncertainty over the economy despite stronger than expected GDP growth figures.
But hopes that the UK will soon agree a Brexit transition deal with Brussels have contributed to the currency’s strong performance.
Michael Hewson, chief analyst at CMC Markets, said the only event that could send the sterling plummeting if talks with the EU broke down completely, which he said did not look likely as Brussels looked more amenable to negotiating with Britain.
Towards the end of last year, sterling enjoyed a slight surge as the first phase of the Brexit talks were concluded.
Both the UK and the EU’s remaining 27 member states will face "substantial losses" without a deal on Brexit, according to a recent report.
Europe would be clobbered by 1.2million job losses if no agreement were reached, while Britain would take a 4.5 per cent hit to GDP, according to the Centre for Economic Policy Research.