Despite previous assumptions, the pound against the euro has fallen. Data is worrying because the experts’ forecasts were different.
Even though the British pound rose against the euro this morning, a few hours later there was no trace of it. In the morning for one pound you had to pay 1.123 euro, and then the price of the British currency fell to 1.129 euros.
The pound exchange rate from last week surprised experts who had not previously anticipated such problems for the British currency. At the same time, the euro rose to the same level as the rebound. However, experts point out that there are other reasons for this decline.
Certainly, the pound was affected by the inflation that has been rising since June, which is 1.2% at the moment, which also exceeded data experts’ expectations. The European Central Bank even considered reducing its guarantee to support its euro printing program. Ultimately, however, it was decided that more evidence was needed for rising inflation.
“The pound exchange rate for the euro did not have the best start this week when it had to pay 1.13 euros per pound,” said Laura Parsons, TorFX financial analyst. Meanwhile, the exchange rate of the pound against the dollar slightly increased after the end of last week fell.
“The British pound failed to take advantage of President Donald Trump’s suggestion on Friday that trade between the United Kingdom and the United States should be concluded as soon as possible, due to the lack of internal support the exchange rate may continue to hitherto.”
Currently, the pound exchange rate to the dollar is $ 1.29.