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The pound against euro exchange rate dropped to its lowest level in five months, as the British prepare to take off for a half-session holiday. Despite the gains made yesterday as a result of the optimism that a second Brexit referendum could take place, the pound sterling is soon collapsing. The pound sterling continues to react to today's speech by Prime Minister Theresa May, as well as the Inflation in April in the United Kingdom. TThe European elections in the UK tomorrow could also have consequences for the pound sterling.
The pound is currently trading at 1.138 euros against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, told Express.co.uk about the latest exchange rate figures.
"The pound closed slightly lower against the euro on Tuesday as the pound recovered its expected gains on a turbulent stock market day," Brown said.
"At one point, the pound sterling had gained up to 0.75%, before the Prime Minister's speech, after the announcement of a second referendum under the deal.
"However, despite the current rumors, it was a case of 'buy the rumor, sell the fact' for the markets – with investors unimpressed by the Prime Minister's offer, in addition to lingering concerns that the updated agreement could not win a majority in Parliament.
In the Prime Minister's speech on Brexit, May offered MPs the opportunity to vote on whether to submit her Brexit agreement to a second referendum or not.
Voting can only take place if the May Brexit bill pbades the first stage of the vote in parliament.
She told Cabinet: "The withdrawal agreement bill is the vehicle that allows the UK to get out of the EU and it is essential to find a way to go beyond it."
Senior parliamentary officials reacted with horror to the news. Boris Johnson tweeted: "The bill goes directly against our manifesto – and I will not vote for it – we can and must do better – and deliver what people have voted for."
Jacob Rees-Mogg said: "The Prime Minister's latest proposals are worse than before and would leave us deeply tied to the EU. It is time to leave on the terms of the WTO. "
Vince Cable added, "The Prime Minister's latest attempt to get his withdrawal agreement to the House of Commons without a confirmation referendum being joined is doomed to failure." His authority is in the process of disappear."
So, how will the pound react today? Mr. Brown told Express.co.uk: "For the day ahead, if West Westminster remains at the center of the concerns and spinoffs of yesterday's speech, the markets will be able to absorb the numbers. April's inflation in Britain.
"The data should show that the CPI will grow 2.2% year-on-year, exceeding the target set by the Bank of England for the first time this year.
"However, a higher-than-expected publication should not result in major support for the pound, the BoE should not change monetary policy until Brexit uncertainty has dissipated."
Ian Strafford-Taylor, CEO of FairFX, said: "The European elections, which we did not expect to vote until recently, could still disrupt the pound sterling against all currencies. , not just Euro-Trading or EU Member States. "
"As in recent local elections, voters should use these polls as an opportunity to express their dissatisfaction with the current state of British politics, which could have a knock-on effect on the pound sterling against currencies across Europe. "
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