Pound sterling is benefiting from a sinking euro

The exchange rate is siting at €1.134, dipping slightly from 1.136 earlier this morning.

Sterling is benefiting from a sinking euro, which took a major hit in the fallout from a crucial political vote in Spain.

The Catalan government said around 2.26 million people voted in the banned independence referendum to leave Spain on Sunday.

It represented a turnout of around 42.3 percent of Catalonia’s 5.34 million voters.

Pound euro exchange rate

Pound euro exchange rate: Sterling is benefiting from a sinking euro

Catalan officials revealed 90 per cent of those who voted in the contested referendum have called for Catalonia’s independence from Spain.

Spain has faced criticism after images emerged of police attacking voters as they attempted to stop the referendum taking place.

Rubber bullets were reportedly fired at protesters and video emerged showing ballot boxes being seized.

Nearly 850 people were injured as police clashed with independence protesters on polling day.

Pound euro exchange rateBLOOMBERG

Pound euro exchange rate: Sterling is buying €1.134

The intensifying political unrest hast taken its toll on the euro, as markets fear an impending split of Spain.

Though the pound has been slightly boosted, it’s failed to gain much ground against the single currency.

TorFX currency analyst Laura Parsons said: “On Friday the pound was left trading in a weaker position against a number of its rivals thanks to a less-than-impressive UK GDP report.

“With the British economy growing at its slowest pace since 2013, the odds of a near-term interest rate hike from the Bank of England (BoE) declined, and GBP slid along with them.

Pound euro exchange rate

Pound euro exchange rate: The euro has taken a hit due to the Catalonia referendum

“Today GBP/EUR is trading in the region of €1.135, up slightly from the day’s opening levels.

“Manufacturing PMIs for the UK and Eurozone are likely to be the main cause of GBP/EUR movement in the hours ahead.”

The UK’s manufacturing PMI has dropped to 55.9 in September from 56.7 the month prior.

Factory growth has slowed due to a price pressure hike.

Meanwhile the Eurozone has reported a strengthened factory recovery.

News Source

error: Content is protected !!