The pound has been kept “buoyed” thanks to hopes that a Brexit deal could be on the horizon, experts have revealed.
Although Brexit headlines have been mixed in recent days, rumours Prime Minister Theresa May, 62, has secured a Brexit deal to keep the UK in the customs union after it leaves the EU has kept optimism high.
Dominic Raab’s comments regarding an impending Brexit deadline gave sterling the boost it needed after it reached a two-month low early last week.
GBP could help retain the “upper Hand” against the euro today if new data goes well, experts have said.
Pound to euro exchange rate: Sterling benefits from Brexit ‘boost’
Traders ignore lacklustre UK services PMI and focus on Italy
The pound is currently trading at €1.145 against the euro, according to Bloomberg.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“The UK’s latest services PMI might have revealed a slowing in output in October, but the data failed to dampen demand for the pound.
“Sterling spent the day broadly strengthening, with GBP/EUR pushing to highs of €1.144.
“Although the latest Brexit headlines have been offering mixed messages, rising hopes that the UK will avoid a no-deal exit from the EU have kept the pound buoyed.
“Today’s British Retail Consortium (BRC) like-for-like sales data is expected to show a sales rebound.
Pound to euro exchange rate: GBP ‘strengthens’ as Brexit deal hopes rise (Image: Getty Images)
“If that proves to be the case Sterling could retain the upper hand – but Germany’s factory order data will also be of interest.”
The pound began to climb at the end of last week after British Conservative Party politician Dominic Raab announced the deadline for a Brexit deal to be negotiated was 21 November.
Raab said, in a letter to MPs made public on Wednesday night, the end of the negotiations with the EU is “firmly in sight.”
He wrote: “The end is now firmly in sight and, while obstacles remain, it cannot be beyond us to navigate them.
The UK’s latest services PMI was released yesterday. Statistics company Markit revealed growth in the UK services sector fell to a seven-month low in October as a result of Brexit uncertainty.
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Pound to euro exchange rate: The pound is currently trading at €1.145 against the euro (Image: Bloomberg)
Pound to euro exchange rate: Hotels, restaurants and leisure providers reported greatest slowdown (Image: Getty Images)
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Hotels, restaurants and leisure providers reporting the greatest slowdown in the services PMI.
Fortunately, despite the weaker services data, the pound’s growth has not been dampened.
Looking ahead at today, euro investors will be focused on Germany as data looks at how the country’s industrial sector and factory orders fared in September.
This should give markets an idea of how the Eurozone’s powerhouse economy third quarter GDP figures will look when they come out next week.
Meanwhile, travellers heading to the airport should be aware of the clever trick some airports use to make passengers spend more money.
With airport food and drink already being rather pricey, it comes as a shock for frequent fliers.