Pound to euro exchange rate: GBP falls as Downing Street insists leave from customs union

THE POUND is sitting against the euro at £1.1415 this morning after Downing Street announced they are rejecting the idea that the UK will remain in the customs union post Brexit.

The Bank of England explains the exchange rate

The pound has fallen against the euro despite a slight pick up after a slow weekend.

The latest Bloomberg figures show the pound to be trading at £1.1415 against the euro, a fall from yesterday’s trading rate of £1.1423.

Last week saw the GBP/EUR rate drop “from close to £1.160 to €1.140 over the course of the week” explained Laura Parsons, Currency analyst for TorFX.

This drop carried on the back of the Bank of England Governor, Mark Carney’s dovish comment in which he dampened expectations for higher interest rates. 

Instead of a sharp rise, Carney said: “Prepare for a few interest rate rises over the next few years.”

Despite the low rate over the weekend, the pound showed some signs of improvement yesterday.

Ms Parsons, revealed to the Express.co.uk:  “As a new week of trading got underway the GBP/EUR exchange rate edged slightly higher despite the Eurozone’s services PMI coming in above forecasts. 

“The pound’s potential to gain remained limited however as Downing Street rejected the idea that the UK could remain in the customs union after leaving the EU.”

Downing Street has remained firm incensing that the UK will leave the customs union once Brexit has been implemented.

According to the Independent, a Downing Street source said: “The position remains very clear: we don’t think staying in a customs union is the right thing to do and it isn’t government policy to do so.”

Pound to euro exchange rateGetty

The pound has fallen further against the euro

The health secretary Jeremy Hunt reiterated this point when speaking on BBC1’s Breakfast yesterday morning.

He Said: “Theresa May’s position on this has been very, very clear.

“She has said that we are not going to be part of the customs union or any customs union.

That position hasn’t changed, and Downing Street have been clear about that this morning.”

Ms Parsons’ explained that economics are also watching over the UK’s public sector.

She revealed: “If the UK’s public sector net borrowing report provides cause for concern today the pound could struggle.

“A business optimism survey from the Confederation of British Industry (CBI) will also be of interest.”

Pound to euro exchange: Bloomberg figuresBloomberg

The pound to be trading at £1.1415 this morning

Pound to euro exchange: Downing Street Getty

Downing Street rejected the idea that the UK could remain in the customs union

Holidaymakers wishing to buy foreign currency should not rush into the decision.

Money Saving Expert Martin Lewis previously revealed travellers should question: “Would I be content with today’s rate?” 

If you’re worried you’re not getting the best rate, he advised to split it up. 

Buy half “locking that in”, and the rest just before you travel.

Although to receive the best rate, never wait until the airport as exchange rates are poor yet commission is high. 

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