The pound to euro exchange rate has been in a state of flux since the vote to leave the European Union.

Now the behaviour of David Davis could effect the currency further, an expert has told

The 69-year-old Conservative MP and Secretary of State for Exiting the European Union has prompted rumours he may resign.

What would this mean for the pound?

Laura Parsons, currency analyst at TorFX, said: “While the prospect of Brexit secretary David Davis resigning left the pound fluctuating on Thursday, Sterling found some support in the form of fresh speculation that the Bank of England (BoE) could be gearing up for a rate hike in August.”

Pound to euro exchange rate: Brexit leaves currency ‘fluctuating’

However, news of the bank’s potential plans did not do much to help the pound.

Laura added: “This wasn’t enough to boost the GBP/EUR exchange rate however, and the pairing ultimately closed down on the day’s opening levels despite a report showing that German factory orders slumped -2.5 per cent on the month in April.”

The immediate future does not look too positive either.

Pound sterling is unlikely to see a boost before the end of the week, bad news for anyone exchanging cash today.

The financial expert said: “Final inflation figures for the Eurozone are unlikely to have much impact on GBP/EUR today unless the numbers are revised from initial estimates.”

Pound to euro exchange rate

Pound to euro exchange rate: Brexit leaves currency ‘fluctuating’

Yesterday morning the pound to euro exchange rate sat at 1.1387.

The currency has been on a downwards trajectory since the start of the week.

Sterling managed to lose the ground it had gained.

This was due to the euro being bolstered by comments made by European Central Bank chief economist Peter Praet.

He implied the ECB will consider tapering its quantitative easing program at an upcoming policy meeting.

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Pound to euro exchange rate: What are the best rates? The Post Office is offering 1.1084

Exchange rate board

Pound to euro exchange rate: Yesterday pound to euro exchange rate sat at 1.1387

On Tuesday GBP reached 1.142 EUR.

Laura Parsons, currency analyst at TorFx, said: “The pound finally enjoyed a solid day of trading on Tuesday, advancing across the board in reaction to better-than-forecast UK services PMI.

“The measure of the UK’s all-important services sector rose from 52.8 to 54.0, pushing the GBP/EUR exchange rate to a high of €1.142.

“With this sign that the UK economy recovered ground at the start of the second quarter, hopes for a near-term interest rate increase from the Bank of England (BoE) rose, and the pound rose along with them.”

However, predictions that the pound could increase further did not come to fruition.

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