The pound to euro exchange rate fell sharply yesterday as the House of Commons gets set to vote on Prime Minister Theresa May’s withdrawal deal. It has been much speculated that the House of Commons will reject the Brexit deal once again. If there is not enough support there will be a fortnight to choose what will happen next. Experts have cautioned that volatility is likely to continue to plague GBP today.
The pound is currently trading at €1.163 against the euro, according to Bloomberg at the time of writing.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“On what was originally the day earmarked for the UK’s exit from the EU we are instead set to have yet another parliamentary vote, this time on PM Theresa May’s withdrawal agreement,” Parsons said.
“If it finally gets enough support it would spell the end of May’s premiership and if it doesn’t we have two weeks to decide the next course of action.
“All the uncertainty has left the pound down almost a cent against the euro this morning, with the pairing trading in the region of €1.161.
“We’re likely to see GBP volatility today, so keep your eyes peeled!”
Michael Brown, senior analyst at Caxton FX, added: “Sterling remains in ‘wait-and-see’ mode after Wednesday’s political developments, with expectations of Parliament approving the Withdrawal Agreement fading after the DUP’s rejection of the deal once again on Wednesday night.
“Indicative votes also failed to yield an outcome, though once again rejected no-deal, something that was already priced into markets.
“The outlook for the pound remains uncertain, though markets seem relatively happy at their current levels as political deadlock continues.
“While approval of the Withdrawal Agreement or moves towards a ‘softer’ Brexit would likely see sterling strengthen, downside risks in the shape of modestly increasing risk of a general election or a no-deal exit cannot be completely discounted.”
So how will today’s exchange rate affect holidaymakers? Today, the Post Office is offering a euro rate of €1.1298 for over £400 and a rate of €1.1427 for over £1,000.
Ian Strafford-Taylor, CEO of currency expert, FairFX said: “[Wednesday’s] parliamentary votes failed to paint a clearer picture for exactly how and when Brexit will play out.
“As we’ve said time and time again, uncertainty is one of the biggest causes of volatility for the pound, and with so little clarity over Brexit at the moment the pound is more vulnerable than ever.
“As families prepare for their Easter getaway, a question we’ve been asked a lot is when to buy holiday money.
“The best thing holidaymakers can do is keep an eye on how the pound reacts this week, and lock-in rates to a prepaid card when you’re happy with the rate on offer as this is the only way to safeguard yourself from further fluctuations.
“If you haven’t booked a holiday yet this year it’s worth considering destinations where the pound is performing well if you want to see your money go further. Looking at destinations outside of the eurozone could be the key to getting more for your money.”
Money Saving Expert Martin Lewis has urged Britons to make the most of bargain last-minute holidays this weekends, now the risk of Brexit today is no more.
Lewis said on Lunch Money Martin on 5 Live: “It was meant to be Brexit weekend this weekend. Lots of people are rightly nervous about flying and wouldn’t have booked to fly over this weekend and wouldn’t have booked to go away.
“It’s no longer Brexit weekend, the risk has gone. It would be worth it if you fancied a week or weekend away checking whether you can get a cheap trip away this weekend.”
