However, he is unwilling to stick his neck out and predict whether and when the pound and euro will reach parity. The upcoming weeks will be important now that the UK has eased lockdown measures. - The European currency is now at its highest since May, 2018, and was boosted last month by the European Union’s agreement on a €750 billion ($820 billion) coronavirus recovery fund financed by joint borrowing. Copyright © 2020 MarketWatch, Inc. All rights reserved. When it became clear that wasn't the case, people were disappointed. portalId: "4607863", "As political tensions eased, it made the currency look rather more attractive.". The National Front, led by Marine Le Pen, wanted France to abandon the euro - a move which could have caused turmoil in the eurozone - and even the European Union as a whole. formId: "d1854117-c95e-4193-952a-77730be26b56" The pound has been buying fewer euros since it fell sharply on 24 June 2016, the day after the UK voted in a referendum to leave the European Union. Throughout yesterday’s trading period the euro to pound rate increased close to similar levels that we saw three months ago. In a last-ditch effort to jumpstart stimulus talks, Democrats are preparing a $2 trillion-plus bill to boost the economy in the wake of the coronavirus. Economist Rainer Singer explains why the Euro is currently so strong against the Dollar Subscribe: https://goo.gl/uq0vlT Sign up for Research: https://goo.gl/F6Ar7C Erste Group is … And more monetary stimulus will also make it cheaper for governments to finance their deficits on financial markets. Answered Even though the pound has weakened recently, it still out-values USD, EUR, AUD, etc. We have seen around the globe in places like China and Germany, that second waves are likely, and if the UK have to go into full lockdown once more you would expect the pound to weaken further against the euro. Two of the main reasons why the sterling has dropped against the euro is the ongoing Brexit saga and the UK economic data that has been produced. BAFTA-winning Ambulance is back with brand-new episodes, https://www.bbc.co.uk/news/business-40896987, Full article Real human stories behind the sirens, Full article Daily news briefing direct to your inbox. He's bearish on the pound, and recommends buying the euro against the British currency. These are external links and will open in a new window. ELI5: Why is the British pound (GBP) so strong against a lot of the worlds major currencies? Therefore, the numbers show that the European Economy may bounce back from COVID-19 quicker than expected. If that was the case, you may see a fall in EURGBP exchange rates. April saw a record 2.93 million eurozone visitors - up from 2.499 million in April of last year, according to the Office for National Statistics. In other news the International Monetary Fund is set to provide an update at 14:00 today. CTRL + SPACE for auto-complete. hbspt.forms.create({ He concedes it's "possible" the pound could reach 1.05 to 1.06 euros before the end of the year. Historical and current end-of-day data provided by FACTSET. Why Has Sterling Fallen so Much Against the Euro? If there are any bits of information that surprises the market, this could cause movement for the euro. These numbers will have to improve if sterling wants to reverse the losses we have seen in recent weeks. It was only this morning that health leaders according to the BBC are ‘calling for an urgent review to determine whether the UK is properly prepared… for a second wave’. A lot has happened since, therefore this meeting could be significant. Cookie Notice. A strong pound means greater spending power abroad and cheaper imports. -0.09% Tune In : CNBC's " Money in Motion Currency Trading " airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. The pound has climbed 0.64% to $1.3011 against the dollar today and 0.38% to €1.1958 against the euro. EURGBP Forecast: Will Euros Continue to Become More Expensive? So far, the recovery in most European countries is mostly based on domestic consumption; households resume spending after three months of forced savings, and find their way back to shops or restaurants. It holds the title as the second world reserve currency and is the official currency of 19 of the 28 member countries in the EU. The UK have made it clear that they will not extend the trade talks past the end of the year, therefore the chances of crashing out of the EU have increased. The pound is touching 10-month lows against the euro at the moment at 1.0981 euros. The pound has been buying fewer euros since it fell sharply on 24 June 2016, the day after the UK voted in a referendum to leave the European Union. And the central bank’s level of discomfort tends to rise when the euro rises above the $1.15 mark. up almost 7% since the beginning of the year and more than 11% since March 20, around the time lockdowns were being implemented throughout the continent.

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