The pound-to-euro exchange rate today lies at 1.1316, an increase of 0.11 per cent, while the pound is at 1.3136 against the dollar.
At the start of this week the pound was on a steady decrease against the euro but it has started to rise yet again.
The pound’s exchange rate will be heavily affected by the sixth round of Brexit negotiations which get underway today.
Trading has continued in a sideways fashion against the euro and dollar over recent days due to speculation over how the talks will proceed.
The overarching question currently is whether the latest round of talks will provide a breakthrough. Numerous people in the foreign exchange market are looking to justify the pound’s current level.
Sam Lynton-Brown at BNP Paribas told the Pound Sterling Live:“The market is currently pricing in a transitional deal. But this highlights a vulnerability.
“If market sentiment shifts, if the market starts to price in a ‘no deal’ scenario, it’s likely to weigh on Sterling.”
Commenting on the pound to dollar Lloyds told Pound Sterling Live: “We could see renewed weakness come in.”
Research from BNP Paribas believes the value of the pound will drop to a low which will be reached in the first-half of 2018.
Mr Lyndon-Brown added “We expect growth in the UK to slow materially more than the Bank of England projects. It forecasts 1.6 per cent growth for 2018, we expect growth to slow to 1.0 per cent.”
Helen Dickinson, BRC Chief Executive stated Chancellor Phillip Hammond should deliver a budget for the shopper later on in the month – in order to keep spending strong and strengthen the UK economy.
She said: “Considering the intrinsic link between consumer spending and economic growth, the chancellor should reflect on this disappointing state of play and deliver a budget that allays the risks of a further slowdown in consumer spending, by keeping down the cost of living. In other words, a shoppers’ budget.”