In our look at the euro rates today, the euro to pound interbank exchange rate has hit 0.8650, its highest in close to 3 weeks, or since March 22nd.
By contrast, back on April 4th, the Eurozone's common currency was as low as 0.8521 versus sterling. So it's since strengthened by over +1.25 cents, or +1.51%.
To put this into context, 250,000€ at today's interbank exchange rate would be worth £216,250. This compares to £213,025 on April 4th. So that's a rise of +£3,225.
You can get a highly competitive euro to pound exchange rate quote, by entering your details into the form on the right-hand side of the page.
Let's examine some key factors that have contributed to strengthen the euro versus sterling recently.
EU to Decide Length of Brexit Extension
A first explanation why the euro to pound interbank exchange rate has neared this 3-week high is because the EU will decide the length of the UK's Brexit extension today. There are concerns that the UK might enter a "Brexit limbo", reports The Daily Mail.
In particular, European Council President Donald Tusk is pushing the EU's 27 leaders to give the UK a 1-year "flextension". This way, Parliament could ratify a Brexit deal at any time in the next 12 months, for the UK to exit the EU.
However, the risk of this "flextension" is that it would take the pressure off the UK's Conservative and Labour parties to agree a Brexit deal, to present to the EU in the near future. In turn, this would continue the Brexit uncertainty for the UK's businesses and investors.
"Any delay of Britain's departure from the European Union would seem likely to maintain the uncertainty and hurt the Pound" notes Richard Pace, an analyst at Thomson Reuters, for instance. So this has helped strengthen the euro rates today.
Cross-Party Brexit Talks Continue Without Agreement
In addition, another factor why the euro to pound interbank exchange rate has risen today is because the Conservatives' and Labour's cross-party Brexit talks continue without an agreement. This is further adding to the uncertainty over the UK's Brexit outlook, according to The Guardian.
Yesterday, Downing Street announced that the latest round of discussions between Prime Minister Theresa May and Labour leader Jeremy Corbyn had finished without a deal. That said, talks will resume tomorrow, on Thursday 11th April.
In particular, both Mrs. May and Mr. Corbyn are under pressure from their parties to end talks without an agreement. For example, recently 100 Tory councillors and candidates wrote to the Prime Minister, warning her that support for the Conservatives is "in freefall".
Meanwhile, Labour is also holding talks with Northern Ireland's Democratic Unionist Party (DUP), to see if they can reach a deal that preserves the integrity of Northern Ireland's union with Great Britain. Financial markets are also waiting for the results of these discussions, which has helped lift the euro rates today too.
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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@example.com.