Welcome to Pure FX's latest update of the pound to euro interbank exchange rate.
Are you a Brit intent on buying a holiday home in France or emigrating to Spain later this year?
If so, it may interest you to know that the pound to euro interbank exchange rate has strengthened notably in the last day, from a low of 1.1479 up to 1.1560. This is a gain of +0.7%, or more than +0.75 cents.
GBP to EUR Rate Climbs, as EU Extends Brexit Deadline
A big reason why the pound to euro interbank exchange rate has gained in the last day is because the European Union (EU) has agreed to extend the Brexit deadline, says the BBC.
Yesterday night, at a meeting of the EU's 27 leaders, they agreed to extend Article 50, the Brexit negotiating window, up to May 22nd. This is if next week the UK Parliament votes for the previously-negotiated Brexit deal.
If MPs vote against the deal, which would be the third time they do so, the EU has said that they'll extend Article 50 to April 12th, to give the UK time to "indicate a way forward".
This has contributed to strengthen sterling versus the euro, because this has reassured financial markets that the UK may still exit the EU with a deal, in the coming weeks.
Pound Climbs, as UK Firms "Ready" for 'No Deal' Brexit, Says BoE
Another factor why the pound has risen versus the euro is because a majority of UK businesses are now prepared for a 'No Deal' Brexit, according to the Bank of England (BoE).
On Thursday, the UK's central bank held interest rates at 0.75%, as widely forecast by financial markets, reports The Economics Times.
That said, in addition, the BoE announced that 80% of British companies now feel ready for a 'No Deal' Brexit, up from 50% in January, according to a poll of 300 firms.
This has given confidence to the financial markets that, if there's a 'No Deal' Brexit, the impact on British businesses will be minimal. So this has helped lift sterling versus the common currency too.
Sterling to Euro Rate Strengthens, as France's Business Activity Eases
In addition, a further explanation why UK sterling has climbed versus the Eurozone's common currency is that French business activity has contracted in March, said trusted statistics today.
According to economics watchdog IHS Markit this morning, business activity in France's services, manufacturing and construction sectors fell to 48.7 this month. This is below February's 50.4, and beneath the 50.0 figure that points to shrinking activity.
This might spur concerns that the Eurozone's economy has continued to slow in early 2019, and also highlights the need for Europe to reach a Brexit deal with the UK. As a result, this has also helped boost the GBP versus the EUR.
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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 firstname.lastname@example.org.