Last week saw a slight dip in the pound although it managed to remain somewhat steady after a continued lull.
After a rocky few weeks for the pound amidst the uncertainty surrounding the UK government, the sterling managed to stabilise.
The weak spending had been linked to the UK’s poor weather.
As the ‘Beast from the East’ swept across the country at the beginning and end of the month, consumer spending started to fall.
Looking ahead at the forecast for the pound this week, Laura explained that the pound has maintained its position over the euro during the weekend.
Laura Parsons, a currency analyst at TorFX, said: “After a long weekend of chocolate, hot cross buns and family films, it’s back to business as usual today.
“The GBP/EUR exchange rate is currently trading in the region of €1.142, but the pairing could dip this morning if the UK’s manufacturing PMI shows the decline in output forecast by economists.”
Last week saw a number of high street shops announce closures as consumer spending has continued to fall year on year.
The disappointing retail sales released by the Bank of England have previously triggered the pound to drop, citing “some evidence of financial distress”.
Laura Parsons revealed ahead of the four day weekend: “The pound drifted lower ahead of the four day weekend thanks to a less than encouraging CBI reported retail sales index.”
Laura went on to explain that the manufacturing measure is forecast to have eased up from 55.2 to 54.7 in March.
A good indication that this may continue to improve throughout April.
However, she warned: “Final manufacturing PMIs from the Eurozone may also have an impact on GBP/EUR ahead of tomorrow’s Eurozone inflation data.”
The Eurozone’s data inflation is the main concern for economics this week.
The 29 March marked a year on since Theresa May announced the UK would be leaving the European Union with the transition period triggered.
Although a deal is set to be closer than ever between UK and EU leaders, the high level of uncertainty have kept the GP/EUR exchange rate below 1.15.
If a deal is yet to be decided, it does not look likely that the pound will soar above the euro.
As a result of the low and uncertain exchange rate, the rocky figures have seen a negative impact on European tourism by Britons.
Choosing to stay closer to home and in an attempt to avoid changing money, the UK and seen a boom in British staycations.