Pound to euro exchange rate: Sterling falls following latest Airbus Brexit warning

The pound is currently trading against the euro at €1.134 according to Bloomberg figures.

Despite ending last week on €1.141, the UK exchange rate struggled yesterday to retain.

It fell slightly to €1.138, in light of the Bank of England policy decision on Thursday.

The bank interest rate of 0.5 per cent remained unchanged after a 6:3 vote.

It was last increased in 2017, from 0.25 per cent to 0.5 per cent in November.

Laura Parsons, currency analyst at TorFX, explained how the exchange rate has struggled to improve this week.

She told Express.co.uk: “After the recent Bank of England (BoE) excitement, the pound had a pretty dull start to the week, with the GBP/EUR exchange rate edging lower on Monday.”

The pound has also been affected by the latest Brexit news surrounding Airbus.

The plane manufacturer has warned that it could relocate from the UK after leaving the EU next year if no transition deal is made.

This could affect 14,000 people who are currently employed by Airbus in the country.

Last Thursday, Airbus published their Brexit “risk assessment” warning that the planned transition for 2020 is not enough time to sort out the issues.

It stated: “Airbus would carefully monitor any new investments in the UK and refrain from extending the UK suppliers/partners base,” if the UK leaves the single market without a deal.

However, their warning has been slammed as “coordinated” with the Brexit march last weekend.

Robert Oulds, director of the Bruges Group, told TRT World: “It’s very interesting how Airbus, which receives a lot of money - around £16 billion - from the European Union, is calling for Britain to stay in the customs union and the single market."

He said that it was an attempt to “undermine” Brexit despite a drop in unemployment since the vote two years ago.

Ms Parsons explained how the pound could be affected by other news expected this week.

She said: “There are speeches from BoE and European Central Bank (ECB) officials scheduled today, and any comments which highlight the diverging policy stances of the central banks could prove pound-supportive.”

Holidaymakers heading abroad this summer could be making a simple mistake that costs them up to £90 when exchanging foreign currency.

Travel currency expert, FairFX advised that by changing travel money on the wrong day, it could mean a loss of £87.

Checking the rates on the day and exchanging when at its peak can help money go further this year.