As Britain prepares to leave the EU later this week, sterling has held relatively steady against the euro.

Apart from a post-election surge to 83 pence, the pound has held in the range of 84 to 85.5 pence to the euro since the Conservatives secured an overall majority in the UK general election.

That cleared the way for the passage of the Brexit Withdrawal Bill in the UK parliament last week ahead of its scheduled departure from the EU on Friday.

However, there is scope for further swings in the pound as the EU and UK enter the next phase of negotiations on a future trading arrangement.

Exporting companies are being warned to plan ahead and to consider taking advantage of the period of relative strength in the pound now.

"Sterling has averaged at 88 pence [to the euro] for the last three years. It's below 85 pence now. That's a very good rate for exporters," John Finn, Managing Director of Treasury Solutions, which helps companies deal with currency risk said.

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"On the balance of probabilities, sterling will weaken over the coming months. At 85 pence versus 88 pence, you're looking at an extra €4,000 profit on every £100,000 of sales straight to the bottom line. I'd call that money for jam," Mr Finn stated.

In the immediate term, pound traders will be looking to the Bank of England interest rate decision on Thursday.

"With data signalling a rather sluggish UK economy at present, it is widely expected that at least more than the previous vote of two member will push for a cut," currency traders Clear Treasury said in a note.

They do not expect an imminent rate cut but rather a demonstration by the bank's policy committee that it stands ready to act should the monetary environment require it.