Pound sterling bounced back as Theresa May quashed speculation about her leadership

The exchange rate is this morning buying €1.119 after dipping to €1.114 at the weekend.

Sterling bounced back from worst levels yesterday as Theresa May quashed speculation about her leadership.

The Prime Minister hinted at a cabinet reshuffle, following inner party turmoil and calls for her resignation.

Fuelling the exchange rate rise was a speech given by Mrs May in Parliament.

Pound euro exchange rate

Pound euro exchange rate: Sterling has bounced back from worst levels ahead of fresh UK and EU data

The PM told MPs “real and tangible progress” had been made in Brexit negotiations.

But Labour argued “no real progress has been made” since the referendum vote.

On the EU divorce deal, Mrs May said: “As we look forward to the next stage, the ball is in their court.

“But I am optimistic we will receive a positive response.”

Pound euro exchange rateBLOOMBERG

Pound euro exchange rate: Sterling has climbed to €1.119

The Prime Minister, Chancellor Philip Hammond and Brexit minister David Davis have this week also met with top UK companies to address any concerns over leaving the EU.

Brexit isn’t the only factor affecting the exchange rate – a multitude of data out of the Eurozone and UK today could weigh heavily on the pound.

Germany will release its trade balance figures while the UK will give an industrial production update, among other key statistics.

Laura Parsons, currency analyst at TorFX, said: “The pound bounced back from its worst levels on Monday on fresh political rumours.

Pound euro exchange rate

Pound euro exchange rate: Sterling remains vulnerable to Brexit negotiations

“The GBP/EUR exchange rate briefly moved above on €1.12 on speculation that Prime Minister Theresa May could be planning a cabinet reshuffle in order to reassert her authority following recent calls for her resignation.

“Sterling’s gains were slightly limited by the Eurozone’s Sentix investor confidence measure, which improved from 28.2 to 29.7 in October.

“A stream of reports, including German trade balance numbers and the UK’s industrial/manufacturing production stats could be responsible for GBP/EUR movement today.

“Positive results may give Sterling another lift.”

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