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The pound to euro conversion rate is currently at €1.138 following a tumultuous week which saw highs of €1.140 and lows of €1.126. Yesterday, the pound demonstrated signs of recovery standing at €1.136. The exchange rate improvement is believed to be down to comments made on Wednesday by the Bank of England (BoE) Governor. Mark Carney said: "Some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly becomes more conventional.

GETTY Pound to euro exchange rate: Sterling is continuing to rise

After a bit of a dismal start to the week the pound staged an impressive rebound on Wednesday, rocketing higher across the board in response to a sudden change in tone from Bank of England Governor Mark Carney.

"The extent to which the trade-off moves in that direction will depend on the extent to which weaker consumption growth is offset by other components of demand including business investment, whether wages and unit labour costs begin to firm, and more generally, how the economy reacts to both tighter financial conditions and the reality of Brexit negotiations." The Governor's acknowledgment that interest rate hike speculation is intensifying saw sterling jump against the euro and other major world currencies. Laura Parsons, currency analyst at TorFX, said: "After a bit of a dismal start to the week the pound staged an impressive rebound on Wednesday, rocketing higher across the board in response to a sudden change in tone from Bank of England Governor Mark Carney. "Although Carney implied that the UK wasn’t ready for a rate increase as recently as last week, he changed his tune at the ECB central banking forum in Portugal.

GETTY Pound to euro exchange rate: Mark Carney's suggest interest rate hike has had an impact

How to get the best exchange rate Sun, July 15, 2018 Exchange rate: How to get the best deal on your holiday money. Play slideshow Getty Images 1 of 8 How to get the best exchange rate

"After he stated; "Some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly becomes more conventional" GBP exchange rates surged, with GBP/EUR touching a high of €1.140. "With the Commons vote on the Queen’s Speech later today further pound volatility could be on the horizon." The pound to euro exchange rate has been erratic over the last few weeks. While the pound rose as Prime Minister Theresa May agreed a deal with the DUP, the report from BoE sent the British currency crashing.

GETTY Pound to euro exchange rate: Mark Carney has warned UK banks to set money aside