The pound could see some “volatility” to round off the week, despite reaching a six week high. Sterling has been subject to a “Brexit barometer” as Prime Minister Boris Johnson struggled to keep control of Parliament, despite his insistence the UK will leave the EU on October 31. The Conservative PM saw his motion for an early election given the thumbs down while he later claimed he would rather “die in a ditch” than ask the EU for a Brexit extension. Amid this backdrop, the pound is currently trading at 1.117 against the euro, according to Bloomberg, at the time of writing.
Michael Brown, currency expert at Caxton FX, told Express.co.uk why the upturn may be bittersweet.
He said: “Sterling extended its recent gains into a third straight day on Thursday, to reach a six-week high against the common currency.
“The pound remains buoyed by the perceived lower risk of a no-deal Brexit, though uncertainties persist which should prevent any significant rallies.
“Today’s calendar is barren from the UK, hence focus will remain on political developments.
“Meanwhile, final Q2 GDP figures from the eurozone may result in some volatility if they differ significantly from the initial estimate.”
Previously, the prospect of a Brexit deal has stabilised the pound to euro exchange rate.
Yet overall, the currency has never reached the levels seen prior to the 2016 Brexit referendum.
It remains to be seen how today’s political developments impact GBP, with the PM eager for a snap General Election on October 15.
This would mean, if successful he would be able to go to EU bosses wth a fresh mandate from the UK in order to negotiate a last minute Brexit deal, prior to the October 31 departure date.
Yet while all the uncertainty is playing out, travellers to the Eurozone have been issued with fresh currency advice.
Experts at currency exchange service, WeSwap, have flagged how Brits are charged £125million in additional ATM fees abroad every year.
CEO of WeSwap, Jared Jesner said:“Holidays are more often than not the biggest event of the year for British families, however, there are many hidden costs that arise when abroad which many holidaymakers may not think about – and this can prove to be costly.
“Our research confirms that a huge amount of money goes to waste every year, but holidaymakers should rest assured that there are ways to ensure their hard earned money stretches as far as possible. For example buy back services allow customers to return excess currency and swap it back into pounds – this is particularly useful as the pound’s value has been so inconsistent recently.
“Swapping holiday currency back to Sterling may get you more money than you first thought.
“Also, it is worth bearing in mind that it is best to find free ATMs while abroad.”
In a further tip, he added: “You can also avoid further charges by withdrawing more money less often. And if an ATM or merchant asks if you want to be charged in the local currency, always say yes.”