The pound to euro exchange rate experienced a slightly bumpy ride yesterday before ending the day close to unchanged. After an initial slump following political developments on Tuesday, GBP went on to “stage a late resurgence,” said experts. This was thanks to reports the EU were considering a time-limited version of the backstop. It’s predicted sterling will remain volatile today, however, as it continues to be subject to Brexit’s influence.
The pound is currently trading at 1.1230 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 was whipsawed by political developments on Tuesday, coming under pressure after PM Johnson’s backstop alternatives were said to have been rejected by the EU,” he said.
“The pound then staged a late resurgence after reports the EU were considering a time-limited version of the backstop.
“Despite these headlines being quickly denied, the pound pared losses to settle close to unchanged.
“Turning to today, PM Johnson’s speech at the Conservative Party conference will be the main event.
“Johnson is set to make his final Brexit offer and issue an ultimatum to the EU; agree a Brexit deal in the next nine days, or deal with a no-deal departure.
“The pound will likely remain volatile, continuing to move in line with shifts in Brexit sentiment.”
The Conservative Party are expected to provide a workable UK-EU withdrawal deal ahead of the October deadline.
So what does this mean for British holidaymakers going abroad and hoping to withdraw travel money?
The Post Office is currently offering an exchange rate of €1.0791 for over £400 and €1,1005 for over £1,000.
Currency expert Rob Stross at WeSwap, a peer-to-peer currency exchange service, has shared his advice to Britons when it comes to buying holiday money.
“It is worth bearing in mind that it is best to find free ATMs while abroad,” he said.
“You can also avoid further charges by withdrawing more money less often. If an ATM or merchant asks if you want to be charged in the local currency, always say yes.
“It is important to note that there are more and more countries working towards living in a cashless society, but Britons must remember there are still many countries both in Europe and the rest of the world that are still predominately cash-based, so having cash is vital for some destinations.
“With this needs to come a degree of budgeting to ensure that you have don’t get caught and aren’t charge extortionate rates for getting cash out of the hole in the wall.
“When withdrawing cash abroad, ATMs could charge you up to five per cent for every transaction.
“So it is worth noting when going abroad which countries use cash more frequently and which use card in order to avoid paying unnecessary fees on ATM withdrawals of POS transactions.
