We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
Pound to euro exchange rate slid yesterday as the euro stayed firm. However, GBP “pared its losses” as crunch Brexit talks look likely to lead to a deal. The UK’s departure from the EU continues to be the main driving force for Sterling.
However, experts have warned that “no news may be good news” for sterling at this point.
The pound is currently trading at 1.1118 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling lost ground against a firmer euro yesterday,” said Brown.
“Though [GBP] pared its losses later on in the session after reports that post-Brexit UK/EU trade talks had, or were about to, enter the intensive ‘tunnel’ phase, potentially paving the way for a deal.
“Further rumours from said talks will be the driver of the pound today, once again, though no news may be good news at the present stage.”
George Vessey, UK Currency Strategist, Western Union Business Solutions also shared his insight on Brexit negotiations this week.
“This week could be the week where a UK-EU trade deal is eventually struck,” said Vessey.
“Two key disagreements are access to UK fishing waters and the so-called level playing field for business and both appear still unresolved.”
He continued: “Nevertheless, despite a warning from German Chancellor Angela Merkel [on Monday] about time running out, negotiators from both sides of the English Channel sound upbeat and confident.
“The FX options market shows that the upside for the pound could be limited even if a deal is agreed in the coming days though.
“On the flip side, the downside risk is growing as the premium to protect against GBP downside versus upside has increased over recent trading sessions.
“An agreement could see sterling spike towards $1.35 versus the dollar and €1.14-€1.15 versus the Euro, but no agreement could see sterling fall towards $1.20 and €1.05 respectively.”
So what does all this mean for your holidays and travel money?
Post Office Travel Money is one of many popular providers.
The service is currently offering a rate of €1.0706 for over £400, €1.0863 for over £500 or €1.0919 for over £1,000.
Experts are urging holidaymakers to buy holiday money sooner rather than later.
They recommend getting the currency before the market becomes saturated once again and exchange rates weaken.
“For those consumers looking to book any holidays in 2021 and 2022, it would be wise to start buying up their foreign currency now before the value of foreign currency increases massively again,” Shon Alam, founder of currency exchange platform Bidwedge, said.
“Next year, there will be a mad dash for Euros and Dollars, so British holidaymakers would be best placed to get ahead of the game.”
Source: Read Full Article