Pound to euro exchange rate: GBP surges in biggest one-day gain since March

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The pound to euro exchange rate has seen a series of highs and lows in the last few years, as the journey towards Brexit has ticked every nearer. Though the Prime Minister’s decision to “walk away” from Brexit trade talks dampened the GBP’s position, new hope for negotiations has injected some strength back into the exchange rate.

The pound is currently trading at a rate of 1.1092 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate exclusively with Express.co.uk.

“Sterling notched its biggest one-day gain since March against the euro yesterday, breaking above a number of key technical levels in the process, with the market reacting positively to news that the Brexit pantomime is coming to an end, and that talks are set to resume,” he explained.

“As a result, those talks will remain the primary focus today, with the pound set to be driven by rumour, leaks, and speculation as negotiations get underway once more.”

In the past, the threat of a no-deal Brexit has seen sterling plummet.

Meanwhile, hope for a deal being struck has seen traders wager in their favour.

George Vessey, UK currency strategist for Western Union Business Solutions said: “Once again, discussions between the chief negotiators of the UK and EU concluded without progress yesterday as both sides try to officially restart trade talks and avoid a no-deal scenario unfolding.

“The EU want to intensify talks due to limited time ahead of the transition period deadline on Dec 31, but the UK want a fundamental change of approach by the EU or else it is willing to walk away without a deal.

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“Despite no-trade-deal fears increasing, a scenario which would see tariff and non-tariff barriers to trade kick in, disrupting what is already a fragile economic environment, the pound has not been sold off dramatically like it has done in the past.

“Optimism of a breakthrough is helping to support the pound, but given the necessary timeframe to ratify a trade deal before the end of the year, the next few weeks are becoming more crucial than ever.

“If talks breakdown and the UK does indeed push ahead with an Australia-style agreement, the pound is expected to fall back towards and potentially below $1.20 against the dollar and potentially towards parity against the Euro.

“A breakthrough before the end of the month, or early November, could send GBP climbing up to 5 percent higher across the board.”

Though travel corridors are dwindling in number, many Britons are still opting for a winter holiday in trade for two weeks of mandatory quarantine.

However, figuring out when to secure the best rates can be confusing, especially given the speed at which the pound’s position against the euro is changing.

The best way to be aware of any impending changes is to stay up-to-date with relevant developments in the news.

With Brexit largely leading the way for traders, trade talks are a key news item to focus on.

“Whether you’re paying by paper or by plastic, the best thing you can do is to plan ahead,” Ian Strafford-Taylor, CEO of travel money specialist FairFX, told Express.co.uk.

He advises never leaving changing travel money until the last minute, as this could incur some unexpected charges.

“For those venturing abroad, there are many cheap flight and hotel deals to take advantage of but we’d urge holidaymakers not to waste those savings by leaving their holiday money to the last minute,” he warned.

The expert further explained: “Bureau de change desks at many airports remain closed as a result of the pandemic, meaning those who wait until they’re at the airport to get their travel money are left in the lurch, often having no choice but to use credit or debit cards on holiday instead.

“Unfortunately, paying by credit or debit card overseas can open you up to a number of spending traps that can easily leave you out of pocket – especially if you haven’t planned to use your card abroad.

“The likes of overseas transaction fees, dynamic currency conversion (DCC) and fees for using an ATM machine while in a foreign country can soon add up.”

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