Sterling dips against euro

Sterling has dropped against the euro today (November 11th), falling back from the ten-month high the currency recently reached.

With the Bank of England's latest jobs data and inflation figures due to be released this week, the currency fell compared to the euro.

According to a report by Reuters, the pound could get a lift on Wednesday when the Bank of England's next growth and employment figures are released.

Nawaz Ali, market analyst at Western Union Business Solutions, explained he believes sterling will be stronger going into the middle of the week.

"There will be a lot of resistance around 83.20 pence (per euro) and it will be difficult to get above there," he said.

The analyst added that the pound is also likely to remain in a $1.59-$1.61 range against the dollar in the coming days.

Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole, suggested that it is likely the Bank will have to revise its assumptions upwards this week.

Budget airline Ryanair recently stated that the weaker euro-sterling exchange rate is the reason why fares have been dropping in Europe.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.