The pound sterling has experienced a slight recovery since last week but continues to remain down. The pound may continue to face struggles over coming days as a result of new data, say experts.
Pound vs. Euro
The pound sterling has undergone somewhat of a recovery since its opening rate last week. However, the currency still hasn’t been fully restored to its high from last Thursday. Moreover, it is expected to continue dropping when compared to the euro, according to newly released data, say experts.
Growing Brexit concerns have led to increasing losses in the pound against the euro. Fears of an unstable British future have continued to wreak havoc on the pound’s value. While the pound did experience a bit of a recovery from the low opening rate it saw last week, by the time of writing of this article, it had yet to return to the high it saw on Thursday, which was £1.116.
Last week, the British pound dropped to the lowest point it has seen in eleven months. However, it resuscitated itself by the end of the week. Experts have been cautioning that data released this week will only place greater pressure on the pound.
For instance, the challenges seen in the U.K. manufacturing world can increase the uncertainty in the country. Those figures are expected to be reflected in the pound sterling’s price against the euro.
Over the Weekend
“After slumping at the start of last week the GBP/EUR exchange rate managed to claw back almost two cents before the weekend,” said TorFX currency analyst, Laura Parsons. “Sterling could come under pressure later today if the UK manufacturing PMI shows a decline in output.” Parsons also went on to point out that: “Eurozone PMI’s and any Brexit headlines are also likely to have an impact on the pairing.”
Speculation regarding Brexit is also continuing to impact trader confidence in the pound. As March 2019 draws ever closer, speculation is having a rising impact on the pound. This is particularly true as concerns rise over a no-deal withdrawal from the European Union. This worry has been only underscored as E.U. Chief Negotiator Michel Barnier indicated last week that a no-deal Brexit could become a reality.
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