The GBP/EUR exchange rate dropped a cent today, finishing just above 1.12 as once again Bank of England members raise their concerns. Two members of the Monetary Policy Committee who vote on the interest rate decision, Ben Broadbent and Andy Haldane, spoke today and have caused significant Sterling weakness. The GBP/EUR rate is relying on an interest rate decision in order to move back towards the 1.15 level, however both chose to avoid the topic.

Mark Carney, the Governor of the Bank of England, buoyed markets two weeks ago by suggesting there may be a UK interest rate hike during 2017. However, the jump to 1.14 was completely lost at the end of last week after poor data for the UK economy raised concerns about Brexit.

Could things get worse for the GBP/EUR rate?

Tomorrow there will be data release that could cause another day of drops on the GBP/EUR rate. Average earnings and employment figures will be released in the morning and whilst the expectation is for the data to be positive, it wouldn’t surprise me with Sterling’s luck if it’s below the expected level.

After tomorrow’s releases there are no further releases this week, however with the political landscape in the UK currently anything could happen. There will also be a further round of Brexit talks taking place next week which caused volatility last month. Any releases coming from those meetings and there will be plenty could have a significant influence on the markets.