Pound to euro exchange rate UPDATE: Sterling slips but experts predict future SURGE


As the Rule announced its intention to activate article 50 in just over a week, the hammer out slipped against the euro this morning on Monday 20 Pace.

The news that the start of the Brexit procedure will be triggered on 29 Trek sent the exchange rate from £1 to €1.154 to £1 to €1.150.

This ensures a week where the pound made significant gains, as anxiety in the run up to the Dutch choices saw the euro fall.

There were worries that Geert Wilders, the anti-EU collapse and leader of the Party for Freedom, would win more seats than well-known, potentially leading to the Netherlands holding its own Brexit-style referendum. 

However, although Mr Wilders’ social gathering did increase its number of seats, he failed to win a majority.

Mark Rutte’s People’s Confederation for Freedom and Democracy were victorious with 33 seats and 21.2 per cent of the show of hands, which helped ease Eurozone nerves and strengthen the currency.

Regardless how, despite the pound’s slight dip, sterling may strengthen again based on the February Consumer Cost Index figures released on Tuesday.

If it turns out inflation increased at a faster rate than expected last month, the Bank of England could be phony to tighten UK monetary policy again.

Last week at a Bank of England assembly, one member of the Monetary Policy Committee voted to hike UK interest ratings.

While Kristin Forbes was the only one to vote for this measure and UK principles stayed the same temporarily, her decision led investors to believe others may in due course follow suit, bolstering the pound.

Writing in the Telegraph, she said: “This softening…should solitary be moderate, due to support from resilient consumer confidence, solid lodge prices, low unemployment, and easy access to cheap credit.

“There are endangers consumers could pull back more sharply – but these are however just risks.”

February’s retail sales are also released next week and desire indicate whether or not the UK’s retail sector has slowed.

Fresh political solicitudes in the EU could also affect the exchange rate next week.

Tallies are shifting in the run up to the French elections, with concerns of a win for far-right National Van leader Marine Le Pen impacting on the euro.

Le Pen has pledged to hold a referendum on whether France should remain in the EU or not should she win the election.

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