The pound notched up its “best levels” in a month as Brexit positivity played its part in the exchange rate rise. Currency experts have recently told of a “Brexit Barometer” dictating proceedings throughout the summer and to the Brexit departure date, on October 31. As yet, the UK has not secured a deal to exit the EU, yet with Prime Minister Boris Johnson attempting to thrash out terms, this could change. The pound is currently trading at 1.107 against the euro, according to Bloomberg, at the time of writing.
Michael Brown, of Caxton FX told how politics can help “underpin” the pound today.
He told Express.co.uk: “Sterling firmed to its best levels in almost a month against the euro on Tuesday, as market participants grew increasingly optimistic that the UK would avoid a no-deal Brexit.
“Such hopes were sparked by a number of factors; including reports that the EU may re-open the Withdrawal Agreement, opposition parties signing a pact agreeing to find ways to legislate against no-deal and rumours that UK officials would be heading to the EU for further Brexit talks.
“Today’s economic calendar is barren, with nothing in the way of significant data releases from either side of the Channel.
“Hence, focus will remain on political developments, with further moves towards ruling out a no-deal exit set to underpin the pound.”
Prime Minister Boris Johnson has this week bene visiting EU state leaders in an attempt to thrash out a deal.
Previously, following the same trend, speculation of a no deal Brexit has sent the pound plummeting.
Tipping the other end of the scale, support for a withdrawal deal has sent the pound soaring.
Yet sterling has never since reached the levels of the 2016, and priory to the Brexit referendum.
Express.co.uk previously reported how Brexit, meanwhile, is acting as a “barometer” moderating the pound to euro exchange rate.
Addressing the issue, Michael said: “The pound is not out of the woods yet, with political uncertainties set to continue to exert pressure and cap any rallies.
“This week’s economic calendar is devoid of any major releases from the UK, hence focus should remain on political developments.
Yet the uncertainty – and consequently fluctuating pound to euro exchange rate – is not happy news for travellers who are struggling to get the best deals on holiday money.
Starling bank CEO Anne Boden has offered Britons some handy advice to help, and insisted those ion the Eurozone particularly should switch their pounds to euros before they travel.
She said travellers should stay savvy when they arrive in their destination, and added: “Don’t accept any offer to ‘fix the exchange rate’ and never, ever accept the offer to convert to your own currency: it will leave you much worse off.”
