Pound to euro exchange rate: Sterling could ‘hold gains’ after Brexit and BoE news

 

The pound shot up against the euro on Thursday despite plummeting to a two-month low earlier in the week.

After trading at €1.120 at the start of the week, the pound is currently trading at 1.138, according to Bloomberg this morning.

With speculation over a no-deal Brexit over the last few weeks, sterling has struggled to grow.

British Conservative Party politician Dominic Raab has announced the deadline for a Brexit deal to be negotiate day November 21.

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And with a positive policy statement coming from the Bank of England, sterling could hold its own as we head into the weekend.

This latest prediction comes from TorFX currency analyst Laura Parsons.

She said: “In a swift reversal of fortunes, Sterling rocketed higher on Thursday thanks to the latest Brexit reports.

“A relatively upbeat policy statement from the Bank of England (BoE) also shored up the pound, with the GBP/EUR exchange rate jumping back above €1.140.

“As long as optimism remains high the pound could hold gains heading into the weekend.”

The Bank of England’s monetary policy committee announced it was keeping interest rated unchanged yesterday.

Pound to euro exchange rate: Sterling could continue to prosper into the weekend (Image: GETTY)

The committee also unanimously voted to keep its stock of UK government bond purchases at £435billion.

While the news of a concrete Brexit deal deadline is music to many people’s ears, if the date isn’t met, this could spell trouble for sterling.

Hamish Duress, currency analyst at OFX, told Express.co.uk yesterday: “The announcement today from Dominic Raab will be welcome news for many, providing a reprieve for the pound in the face of the surging Dollar, which has seen GBP/USD lose over 3.5 per cent in a matter of weeks.

“We will have to wait to see if this date can be stuck to, and if anything leading up to November 21st may cause more market jitters.”

British Prime Minister Theresa May has planned for the UK to leave the EU on March 29 next year.

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Pound to euro exchange rate: Sterling has soared after trading at €1.120 earlier this week (Image: BLOOMBERG)

Pound to euro exchange rate: Dominic Raab has announced November 21 has the Brexit deal deadline (Image: GETTY)

If a deal is not agreed by the deadline date, resulting in a no-deal Brexit, four options will face the Government:

Do nothing and leave without a dealDelay departure, seeking an extension of Article 50Put it to a vote, holding another public referendumTry to have another last-ditch attempt at negotiating

Thu Lan Nguyen, a currency strategist at Commerzbank AG, told Bloomberg pound movement may continue to remain fairly static until a Brexit major breakthrough.

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