The pound has retreated against the euro this morning, with GBP trading near €1.112.
The exchange rate saw a dip of around -0.27 per cent this session.
The pound euro exchange rate is currently being driven by the increased focus on Brexit negotiations, as UK Brexit Secretary Dominic Raab and Chief EU Brexit negotiator Michel Barnier met yesterday to discuss the progress of talks.
In a presser following these talks, Mr Barnier stated that “negotiations are now entering the final stage,” and also indicated that any deal struck between the UK and EU would have “no precedent” and thus be entirely original.
This uncertainty as to how the negotiations might pan out saw the pound euro fluctuate towards the end of yesterday’s session.
A lack of pound-supportive news today has kept the pairing under pressure.
Aiding the euro yesterday were comments from US President Donald Trump in which he expressed his disapproval of the manner in which the Federal Reserve has been handling its recent interest rate hikes.
President Trump stated that he was ‘not thrilled’ with the recent rate hikes, indicating that he’s not happy with the current strength of the US dollar.
This stoked a widespread sell-off of the ‘greenback’ and as the euro US dollar exchange rate is one of the worlds most traded currency pairs, the euro was able to benefit from the US dollar’s weakness.
With the US dollar failing to recover from its slump, the euro has again been performing well in markets today and will likely continue to do so until the US dollar sees a turnaround.
Also aiding the euro is the stabilisation of the Turkish lira, with the emerging market currency so far managing to stave off further losses.
Looking ahead, neither the UK nor EU are publishing any noteworthy data until tomorrow, but the publication of minutes from the Federal Reserve’s latest interest rate decision later today could inspire movement in the currency market.