The pound to euro exchange rate remained relatively firm over the weekend, following the announcement that politicians will not back Boris Johnson’s latest Brexit deal. The news was a blow for sterling, which has soared at the news of the proposed deal. Luckily, the admission from parliament that they were not in support has not caused too much damage for the GBP. However, further political uncertainty coupled with the impending leave date means anything is possible.
The pound is currently trading at 1.1577 against the euro, according to Bloomberg at the time of writing.
According to Michael Brown, Senior Market Analyst at Caxton FX:“Sterling held relatively firm on Friday, and has chalked up minimal losses at Sunday’s FX open, despite hopes of immediate ratification of the new Brexit deal having been dashed after ‘Super Saturday’ became ‘Not-So-Super Saturday’ as the House of Commons withheld approval of the deal until implementing legislation is passed.
“Sterling traders will remain glued to political developments once again today, with the government set to attempt to hold another meaningful vote on the Brexit deal this afternoon.”
Despite MP’s voting against Johnson’s last-minute deal last week, the British Prime Minister remains firm that the UK will make its European departure on October 31.
However, his plans may have been dashed as MP’s achieved what critics had previously thought to be impossible. Voting for the Letwin Amendment, the House of Common pushed to prevent any possibility of a no-deal Brexit happening at the end of the month.
The vote was supported by 322 MPs and rejected by 2-6, including six Labour rebels.
According to the poll ran by Express.co.uk yesterday, readers are sceptical of whether the UK will manage to leave the European Union any time soon.
In fact a whopping 72 percent of those who votes answered “no” when posed with the question “Do you think MPs will allow Britain to leave the EU on October 31?”
The EU has stated they will grant a three-month extension to Johnson if he can not get a deal passed through the House of Commons in time.
EU diplomats and officials told Reuters on Sunday that, depending on the next developments in London, extension options range from just an additional month until the end of November to half-a-year or longer.
Despite this, ambassadors gathered yesterday to discuss Brexit and reportedly did not cover “any possible future delay”. The meeting lasted for just 15 minutes.
With the fate of the pound in the hands of an uncertain Brexit, what does this mean for travellers jetting off on European holidays in the coming weeks?
The Post Office is currently offering an exchange rate of €1.1156 for over £400 and €1.1376 for over £1000.
Another poll ran last week by Express.co.uk revealed that 70 percent of voters are “waiting for the Brexit deal to go through parliament” before exchanging their travel money.
However, this may not be an option for those with imminent travel plans.
International money expert Ian Stafford-Taylor of Equals, formerly known as FairFX, explained the potential fate of the pound moving forward.
He said: “If the Prime Minister is able to rally the votes of MPs on his new deal with the EU it is possible that the pound will strengthen.
“If MPs vote in favour of the deal, it means we move away from a lot of the uncertainty surrounding Brexit and that is more likely to have a positive impact on the pound than a no-deal scenario.”
Luckily, there are ways in which travellers can protect their travel money.
Ian explained: “The best way to protect yourself and your money against the impact of Brexit is to lock in your currency requirements as soon as exchange rates reach a level you’re happy with.
“It’s all relative, so don’t expect the pound to rocket back to pre-referendum rates, but if the rate on offer is good considering the current circumstances, locking in is a sensible option.
“There’s still so much uncertainty surrounding Brexit and it’s very easy for the rates to move against you, so staying alert to the news agenda and the pound’s movements will help you act fast and get more for your money.”
