Welcome to Pure FX's latest update of the euro to pound interbank exchange rate!
The common currency flies higher versus sterling! The euro to pound interbank exchange rate has hit 0.9086 in the last day, very close to its highest in 16 months, or since September 11th 2017.
By contrast, back on November 14th last year, the euro was as low as 0.8961 against the pound, so it's since risen by +4 cents, or +4.54%.
To put this into context, 250,000€ at this interbank exchange rate would be worth £227,150, or £9,875 more than on November 14th!
This may be of interest to you if you're a Brit selling your property in France or Spain, to return to the UK.
Pound Weakens, as Uncertainty Over Brexit Continues
The euro to pound interbank exchange rate has neared this 16-month high, because financial markets remain uncertain over the outcome of Brexit.
In mid-December, UK prime minister Theresa May delayed Parliament's "meaningful vote" over the deal she'd negotiated with the EU, for later this month instead.
In the deal's current form, it's thought that MPs will reject the draft agreement.
That said, if Brexit is delayed for Mrs. May to negotiate a fresh deal, this will further extend the uncertainty about the UK's future relationship with the EU. Hence sterling's weakness!
Sterling Loses Out, as UK Manufacturers Stockpile
What's more, the euro has also neared this 16-month high, because UK manufacturers are stockpiling ahead of the risk of a 'No Deal' Brexit, said closely-watched data yesterday.
According to IHS Markit's monthly UK manufacturing PMI (Purchasing Managers' Index) on Wednesday, UK factory output reached a 6-month high in December, buoyed by new orders.
This though was because domestic and foreign clients are buying lots of stock, to protect against possible disruption, if the UK crashes out of the EU without a deal in March this year. So this has dragged down the pound!
Pound Falls, on Apple Revenue Warning
Moreover, the euro to pound interbank exchange rate has also hit this 16-month high, because Apple, the world-famous electronics manufacturer, has issued its 1st revenue warning since 2007.
Yesterday, Apple issued its revenue warning, noting that customers were making fewer iPhone upgrades and of slowing sales in China.
As a result, Apple's shares fell by -8% in after-hours stock market trading.
As a result, sterling has weakened, as global money managers seek safer assets than the pound, given Apple's warning, and the risk that the world's economy may soon slow!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email [email protected]