The pound to euro exchange rate has fallen as fresh Brexit woes arose with the return of Parliament. On Tuesday, the Supreme Court ruled the prorogation of Parliament unlawful. This decision saw GBP rise against the euro as the possibility of a no-deal Brexit seemed less likely, with MPs regaining control of the Brexit process. However, a “fresh dose of Brexit nervousness” has manifested itself after Prime Minister Boris Johnson “doubled-down” on his stance as Parliament returned on Wednesday, said experts.
The injection of political uncertainty resulted in sterling falling against the euro to €1.127 yesterday before marginally rising this morning.
The pound is currently trading at 1.1288 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 lost ground against the common currency on Wednesday,” Brown explained.
“MPs’ return to Westminster brought with it a fresh dose of Brexit nervousness as PM Johnson doubled-down on his stance of leaving the EU on 31 October.
“Political developments will continue to dominate in the day ahead, with today’s economic calendar devoid of any major releases.”
Chief investment officer at UBS Global Wealth Management, Mark Haefele added: “Predicting the ultimate outcome of Brexit remains difficult.
“As a result, the longer-term risk-return outlook for UK equities looks uncertain and we still advise being nimble on Sterling.”
Looking ahead at today, euro sentiment could fall following the release of GfK’s German consumer confidence.
If consumer confidence slips in October amid fears the bloc’s largest economy is entering a recession, the single currency could fall.
So what does the current exchange rate mean for British holidaymakers hoping to withdraw travel money?
The Post Office is currently offering an exchange rate of €1.10081 for over £400 and €1.1132 for over £1,000.
Savvy travellers should be sure to keep an eye on the ever-shifting rates in order to take advantage of when they become favourable.
Alana Parsons, currency expert from Caxton, said: “Keep a watchful eye on the rates so you can take advantage of any gains, and most importantly don’t leave it all to the last minute and avoid airport kiosks!”
According to WeSwap, a peer-to-peer travel money provider, 54 per cent of British residents say the cost of foreign currency is their greatest Brexit concern.
An additional 15.6 million think their annual holidays will be the thing most impacted once the country withdraws from the EU.
While the ripples of the EU departure are being felt across the nation, it seems younger people are the most concerned. A whopping 63 per cent of millennials expressed a fear the cost of their vacations will increase after October.
Meanwhile, despite the overwhelming number of 55+ residents voting for a ‘leave’ result, only 24 per cent of them feel confident their holiday plans will go unchanged by the knock-on effect of Brexit.
