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Pound to euro exchange rate: Sterling improves but will be ‘dictated’ by Brexit & election


The pound to euro exchange rate has shown slight improvement today after holding firm on Monday. In the latest major development in Brexit news, yesterday saw Brussels agreeing on a new Brexit date. The UK’s departure date has now been shifted from 31 October to 31 January 2020 at the latest.

Currency experts have warned uncertainty surrounding a potential UK general election could see the pound slide.

The pound is currently trading at 1.1591 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 held firm on Monday as a fresh trading week began with Brussels confirming that Article 50 would be extended until 31 January 2020,” said Brown.

READ MORE: Brexit: Head to this one destination for best pound exchange rate Post Office reveals

“Nonetheless it wasn’t all plain sailing for the government, with a motion calling for an early election failing to obtain the required two-thirds majority of MPs.

“Focus today will remain on Parliamentary developments, with the government set to table a one-line bill in order to hold an early poll.

“For the pound, mounting election uncertainty suggests the balance of risks is now tilted to the downside.”

Sebastien Clements, currency analyst at OFX, added: “As anticipated, the European Union has agreed to accept the UK’s ‘flextension’ request.

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“The new deadline will be 31 January 2020, however unlike with previously extensions, the UK now has the option to leave beforehand if the proposed divorce bill is given the green light through UK Parliament.

“The pound has remained fairly muted off the back of the announcement, and it seems as though its position will be largely dictated by general election news over the next few weeks.

“Jeremy Corbyn has remained stubborn on his position surrounding an election, insisting he will only accept an election if a no-deal Brexit is taken completely off the table, but with a no-deal Brexit now looking extremely unlikely, Boris Johnson will be pushing hard for an election date of 12 December.”

So what does all this mean for British holidaymakers hoping to buy travel money? The Post Office is currently offering a rate of £1.1143 for over £400 and €1.1362 for over £1,000.

Research by peer-to-peer travel money provider, WeSwap has shown 54 percent of Britons (28.1 million) are most concerned about the impact that Brexit will have on the cost of foreign currency and holidaying in general.

Out of those aged 55 and over, who voted overwhelmingly to leave the EU, only 24 percent believed Brexit would not make their holidays more expensive.

Rob Stross, CMO of WeSwap commented on the research: “It is near impossible to predict exactly how Brexit and upcoming political events will impact our everyday lives and our freedom to travel to all corners of the globe.

“For those who are still planning on booking breaks for early next year, it is best to prepare as early as possible for any possible outcome. From travel insurance, checking passports to buying foreign currency, preparing these as early as possible is more likely to mitigate risk.

“As for holidaymakers looking to get travel money, it may be more difficult to plan when to buy currency, and also more challenging to predict the value of the pound in the upcoming months.

“In light of this uncertainty, it is always best to exchange money as early as possible. Last minute travel money purchases, in locations such as at airport bureaux, are always likely to lead to less bang for your buck as merchants are able to offer whatever exchange rate they like, knowing holidaymakers have no choice but to accept.

“As for those who are concerned about the possibility of the pound’s value falling further due to current political events, it may be best to buy half of your holiday money today and half later.

“That way, you can assure that you avoid paying higher rates on all of your cash.”



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