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Pound to euro exchange rate: Brexit makes markets volatile – does it affect travel money?


The pound to euro exchange rate failed to do well on Friday as Brexit proved an ongoing stumbling block for concerned market participants after plans reached a deadlock. However, today the focus will turn to the possibility of a UK general election taking place. According to experts, Prime Minister Boris Johnson’s third bid is “unlikely to obtain the required two-thirds majority of MPs.”

Discussions concerning an extension and new Brexit deadline will also be put under the spotlight in Brussels.

The pound is currently trading at 1.1565 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 struggled on Friday as market participants became increasingly concerned about the ongoing UK-EU deadlock; with both sides waiting for the other to blink before announcing their plans,” said Brown.

READ MORE: Pound to euro exchange rate: Will possible election see Britons lose out on holiday money?

“Today, attention will likely centre on PM Johnson’s third bid for a general election since taking office, though the motion is highly unlikely to obtain the required two-thirds majority of MPs.”

Last week, the Prime Minister announced that he had plans for a pre-Christmas election, saying in a letter to Labour leader Jeremy Corbyn: “An election on 12 December will allow a new Parliament and government to be in place by Christmas.

“If I win a majority in this election, we will then ratify the great new deal that I have negotiated, get Brexit done in January, and the country will move on.”

According to the BBC, Johnson offered “one last chance” to Parliament to reassess his withdrawal agreement bill and “get Brexit done” by 6 November.

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However, this revelation saw stock traders selling sterling off in anticipation of further uncertainty.

Looking ahead at today, Brown continued: “Focus will also be on Brussels, with EU27 ambassadors set to meet for further talks over an Article 50 extension.

“A three-month flexible extension seems most likely at present, which may help to provide some respite.”

This comes despite arguments from France’s Emmanuel Macron that a shorter delay would be more appropriate.

Speaking about this, an anonymous senior EU diplomat stated: “We don’t want to be dragged into British politics and this is what was requested.

“They can leave earlier if they ratify a deal. To echo your prime minister, we just want Brexit done.”

So what does all this mean for Britons’ holidays and travel money? The Post Office is currently offering a rate of €1.1139 for over £400 and €1.1359 for over £1,000.

Post Office Travel Money’s latest Holiday Money Index for 2019 has revealed where the best destinations for GBP are right now.

Scandinavia is currently the best destination for Britons on the hunt for a favourable exchange rate, according to the findings.

The report highlighted Norway, Sweden and Iceland as good countries for British holidaymakers wanting a positive rate.

“At a time when Norway attracts UK visitors to see the Northern Lights, sterling has strengthened by 10.1 percent year-on-year against the Norwegian krone,” said the Post Office.

“The UK pound is also 6.4 percent stronger against the Swedish kronor and has risen 5.4 percent against the Icelandic krona.”



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