On Tuesday, the pound to euro exchange rate is reportedly 0.03 percent higher on a day-to-day basis having last been quoted at 1.2569. However, this is significantly lower than the best exchange rate of 1.2652 reported at the beginning of last week, emphasizing how much the pair has declined. This follows Monday's 0.3 percent increase versus the dollar to $1.6861, its biggest increase in around two weeks against the U.S. currency. Meanwhile, the euro dropped 0.3 percent to the pound at 0.7962 pounds, reports The Wall Street Journal.
Monday's gains against the dollar marked a turnaround for the currency, as encouraging U.S. economic data boosted the dollar 1.3 percent against the pound last month.
Omer Esiner, chief market analyst at the currency brokerage Commonwealth Foreign Exchange Inc said, "We're seeing the pound claw back some of its losses. The U.K. construction report was essentially the only market-moving data point on an otherwise quiet day; it provided investors an opportunity to book some profits on the pound's decline over the last few weeks," according to The Wall Street Journal.
On Tuesday the Services PMI will be released, and a figure of 57.9 is expected, for anything lower will seriously hamper the currency leading the way to a financially strained August.
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