The exchange rate has climbed to €1.1375 against the euro this morning, according to figures released by Bloomberg.

This is up from €1.1289 as markets closed on Friday evening.

Pound sterling was affected by Theresa May’s Brexit speech, with her appearance in Florence causing a dip in the pound.

Many were left with questions over the future of Brexit and how it will play out for the UK.

pound euro exchange rate sterling

Pound to euro exchange rate: Sterling showed signs of improvement this morning

The pound bottomed out at €1.1289 and began to recover losses though after markets had digested her comments

Rewan Tremethick, TorFX currency analyst

TorFX currency analyst Rewan Tremethick said: “The GBP/EUR exchange rate slumped on Friday ahead of Theresa May’s Brexit speech and continued to do so after she finished speaking.

“The pound bottomed out at €1.1289 and began to recover losses though after markets had digested her comments.

“On the plus side, she promised to pay £20 billion into the EU budget to secure a transitional period.

“But she also claimed the UK would be bound by EU laws, raising the question of whether the UK can actually use that time to negotiate new trade deals.”

pound euro exchange rate sterlingBloomberg

Pound to euro exchange rate: Sterling was at €1.1375 against the euro this morning

Sterling started out well on Friday morning at €1.136, but was vulnerable against the euro ahead of May’s speech.

Her speech had been highly anticipated in political and economic circles.

The British Prime Minister promised to honour the UK’s commitments to the EU’s budget as she sought to end the deadlock over Britain’s break from Brussels.

She said neither the Government nor the EU would be ready to fully implement new arrangements for Brexit on March 29 2019 when the UK formally leaves.

pound euro exchange rate sterling

Pound to euro exchange rate: Sterling was heavily affected by Theresa May’s landmark Brexit speech

pound euro exchange rate sterling

Pound to Euro exchange rate: Sterling faced a volatile week last week

She proposed an implementation period during which “the existing structure of EU rules and regulations” would apply – and people from the EU would continue to be able to “live and work” in the UK under a registration scheme.

May ended the speech on a positive note, and said: “This is the future within our grasp – so, together, let us seize it.”

It was the end of a mixed week for sterling, which was tested by both UK and Eurozone data.

The exchange rate fell on Thursday after borrowing data showed that the UK government has once again run up a deficit.

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