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Pound to euro exchange rate: Can Sterling make further gains against the euro next week?

Pound to Euro exchange rate Can Sterling make further gains against the euro next week?

The exchange rate of the pound to the euro is 1.1629 today, just 0.17% below the recent 26-week high interbank rate reached on October 21, from 1.1649.

In part, this is because markets believe there is little chance of a "no deal" Brexit. This is because all the major political parties in the UK, except for Nigel Farage's Brexit party, are campaigning on the basis that Britain is leaving Europe by agreement.

Transfer of polls: GBP rate to EUR may be affected by UK election campaign changing polls

Next week, the exchange rate of the euro may affect, among other things, the UK's current election campaign, including the relocation of polls. According to the latest research, conservatives stand at 38%, ahead of 26% of Labor. Traditionally, a 10% advantage has given the winning party a majority of MPs.

However, it is worth noting that, according to the UK's First Past election system, the Post found it difficult to predict the outcome of next month's vote. According to Viraj Patel, a strategist with Arkara, there are "hardly any odds when it comes to political outcomes in the UK".

So, the election campaign and polls could be worth a look, for their effect on a stable exchange rate.

The euro keeps the eurozone's slow growth, low ECB interest rates

The euro, meanwhile, has kept up, partly because of the eurozone's unattainable economic performance, plus the European Central Bank's very low interest rates, reports Reuters.

Next week's key Eurozone economic data include economic growth figures for the 14th quarter on Tuesday in the summer and inflation statistics on the 15th on Friday the 15th, which may affect the euro.

Next week packed for UK economic data that may affect sterling

Key UK economic data for next week include the UK's GDP (Q3) for Q3, between July and September, released on Monday 11th.

On Tuesday the 12th, we will learn about the UK unemployment rate and UK wage growth figures for the three months to September. The unemployed are expected to remain near four decades at 3.9%, while wages will rise by 3.8%, near the fastest pace in a decade.

On Wednesday the 13th, UK inflation results for October will be unveiled, while UK retail for October comes out on Thursday the 14th, forecast at 0.2%, above 0.0% in September. These releases may be worth watching, too, for their impact on the pound.

If you would like to find out more about what can affect rates soaring next week or have an upcoming currency transfer, feel free to contact our currency specialists using the form below.

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