The pound to euro exchange rate slumped to its lowest levels since late October on Wednesday as the first week of December got underway. Sterling’s plummet came as hope for an imminent Brexit breakthrough was showered with a “bucket of cold water”. Experts say negotiations will continue to impact GBP today.
The pound is currently trading at 1.1057 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Tuesday’s Brexit optimism had a bucket of cold water poured over it on Wednesday, with Michel Barnier’s comments that a deal ‘hangs in the balance’ dampening expectations of an imminent breakthrough,” said Brown.
“As such, sterling sunk, hitting its lowest levels since late-October against the common currency.”
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Brown added: “The negotiations will remain in focus today, with a decision set to be made on whether or not they should continue over the weekend.”
George Vessey, UK Currency Strategist, Western Union Business Solutions, shared his insight on how Brexit affects the pound – and how volatile the currency has been in recent days.
He explained that there were reports of Brexit talks entering the ‘tunnel’ stage earlier in the week.
“The ‘tunnel’ is a term for an intense final stage of secretive, make-or-break negotiations,” said Vessey.
“However, an EU diplomat Wednesday morning warned a deal still hangs in the balance, which sent sterling tumbling over a cent in seconds against many currencies.