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Covid rates have continued to climb in spite of the recently dubbed ‘Freedom Day’.
By Tom Holian
Pound to euro rates look like they have absorbed the news of UK restrictions extension rather well.
The GBPEUR exchange rate has managed to hold above 1.16 this week partly due to the Scottish election results and the announcement by the governemnt of further easing of Covid rstrictions.
This week, UK economic data has done little to support GBP rates, as the Eurozone vaccination rollout speeds up, causing sterling to slip lower against the euro.
Bank of England governor Andrew Bailey has also been fairly upbeat about the UK’s recovery potential which has offered support to GBP rates.
Sterling has reached an 11-month high against the euro over the last 24 hours reaching highs of 1.1562.
The pound to euro exchange rate is at 1.1259 at the time of writing, falling from 1.1321 highs seen on Friday.
Sterling has once again had a relatively quiet week so far against the major currencies, pending further updates on Brexit and COVID-19 measures.
GBP has rallied to a seven-week high against the euro ahead of the weekend as EU and UK officials confirm that post-Brexit trade negotiations are making progress.
We saw multiple fluctuations for GBP rates yesterday, with the pound rising and falling throughout the day as rumours came out of Brussels that things remain uncertain.
An independent watchdog has advised UK banks to prepare for a hard Brexit, this appears to have had a minimal effect foreign exchange markets, so far.
The over riding factor influencing the pound at the moment appears to be what is happening with the Brexit talks which are ongoing.
GBP has once more found itself under pressure to to the ongoing Brexcit trade negotiations as both the UK and EU reach a stalemate.
GBP sees a sell-off as UK manufacturing data provides a bleak picture for the British economy.
GBPEUR rate has hit 1.15 as sterling enjoys a strngthening in value due to the UK's coronavirus response.