The pound to euro conversation rate is currently at €1.139, a rise from €1.138 last week.

The exchange rate is showing growth from the previous week.

The pound suffered a tumultuous week which saw conversation rates hit €1.140 and drop to €1.126.

It follows on after comments from the Bank of England (BoE) Governor Mark Carney.

He stated: “Some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly becomes more conventional.

“The extent to which the trade-off moves in that direction will depend on the extent to which weaker consumption growth is offset by other components of demand including business investment, whether wages and unit labour costs begin to firm, and more generally, how the economy reacts to both tighter financial conditions and the reality of Brexit negotiations.”

The Governor’s acknowledgement that interest rate hike speculation is intensifying saw sterling soar against the euro.

However, previously this week, a Bank of England report stated that UK banks need to be aware of losses and be prepared.


The exchange rate continues to rise after a busy week of rises and falls

Comments from Prime Minister Theresa May regarding Brexit and the negotiations could also continue to affect the exchange rate

The statement read: “The Bank of England is taking action so that the UK financial sector continues to serve UK households and businesses in good times and bad.”

Any further comments from Prime Minister Theresa May regarding Brexit and the negotiations could also continue to affect the exchange rate.

Last week, she stated: “We want certainty. I know there has been anxiety.

“Today I want to put that anxiety to rest I want to reassure people under these plans no EU citizen legally in the UK will not be asked to leave.”

Ian Strafford-Taylor, CEO of FairFX, said: “Many factors have an effect on the strength of the pound such as economic and political events, at home as well as abroad.

“The rate did drop by 1% during the middle of last week, to 1.126, when the euro rallied, creating new highs against the US dollar and pound on the back of comments at the ECB Forum where the ECB’s President stated that inflationary pressures were building.  

“But this dip was short lived and the pound quickly bounced back, ending the week at a similar rate it started at against the euro and even strengthening against the dollar.”

pound eurosGetty

The exchange rate currently sits at 1.139 after an increase from last week

The last few weeks have been erratic for the pound to euro exchange rate.

It comes after a rise in the pound after Theresa May agreed to do a deal with the DUP.

However, it remained steady at the beginning of the week before the BoE released its statement.

The current rise continues on from the increase at the end of last week.

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