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Pound euro exchange rate: Weak euro ‘keeping declines in check’ amid Brexit ‘stalemate’


The pound to euro exchange rate faced a lack of Brexit-related news or economic data which saw GBP struggling for direction yesterday. Although Brexit continues to be an influencing factor on sterling’s movement, volatility has been subdued since the UK’s departure date from the EU was postponed until 31 October. Findings by Reuters show that foreign exchange strategists are predicting the pound could rise by three per cent should Brexit be delivered with a deal. However, the figures also caution of a five per cent drop for the currency if negotiations fail.

For now, the focus is on cross-party talks between the Conservatives and Labour and the possibility of another vote on the Withdrawal Agreement.

The pound is currently trading at €1.159 against the euro, according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

“Sterling once again struggled for direction against the euro on Thursday amid an absence of Brexit-related news or economic data,” Brown said.

“Focus remains on the seemingly stalled cross-party talks as well as the possibility of a fourth vote on the Withdrawal Agreement ahead of the EU elections – though such a prospect continues to have an incredibly slim chance of passing.

“The continued stalemate is likely to weigh further on the pound as time goes on, though weakness in the euro is keeping any declines in check at present.”

The pound is down 14 per cent against the euro since the Brexit referendum.

Nigel Green, founder and chief executive of deVere Group has said sterling could soar back to pre-referendum levels should Britain and the European Union reach a deal. 

He said: “Nothing has of any substance been achieved and everything remains up in the air.

“The longer the Brexit process takes, and it is clearly taking a long time, the closer the final relationship between the UK and the EU will be.”

He added: “When Brexit is finally delivered, investors are advised to be on the watch for a rally in the pound, UK stocks and a spurt in economic activity as sidelined household and business spending kicks in.

“In the new environment, should a soft Brexit be delivered, there is a possibility that the pound could rise to pre-referendum levels against the pound.”

Nick England, CEO at EasyFX has warned that British holidaymakers should avoid leaving getting holiday money at the airport.

“As the value of the pound continues to follow the same ups and downs of the Brexit debate, those that leave converting their currency until the airport’s bureau de change risk negatively impacting their spending money.” England said.

“Holidaymakers really should take a smarter approach to their cash… By buying half of their spending money now and half later, travellers can both capitalise on Sterling volatility, and protect themselves against any potential crashes from a no-deal Brexit.”

The Post Office is currently offering a pound to euro exchange rate of €1.1304 for over £400 and €1.1356 for over £1000.



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