Despite a series of highs and lows in recent days, the pound is rounding off the week in a steady position against the euro. Though the early conclusion of “informal” Brexit trade talks threatened to shake any strength the GBP has retained, it is likely sterling will remain in the same position as it moves into the weekend.
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The pound is currently trading at a rate of 1.1166 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his insight into the current rates.
He explained: “Sterling-euro settled back down into its recent rangebound routing yesterday, being largely unfazed by the broad deterioration in risk assets, or by the early conclusion of an ‘informal’ round of post-Brexit trade talks.
“Today, as the week draws to a close, investor risk appetite will likely be the main driver of the pair, with risk potentially being taken off the table before the weekend.”
Following the most recent trade discussions between UK and EU officials, the EU’s chief negotiator emerged saying that “significant divergences” remain.
Michael Barnier added, however, that his team would “continue working with patience, respect and determination.”
Prime Minister Boris Johnson has held firm that the UK will not extend beyond the current December deadline for negotiations.
However, experts have warned that a no-deal scenario could be a major threat to sterling.
“Since the UK voted to leave the EU in 2016, the pound is on average circa 10 percent weaker against all of its major currency peers,” commented George Vessey currency strategist for Western Union Business Solutions.
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“Even if a deal is agreed, a recent Reuters survey revealed sterling may only climb around four percent higher though given the negative economic impact of leaving the EU.”
The fallout of the coronavirus pandemic and subsequent lockdown is also a key player in the ever-changing rates.
Though Chancellor Rishi Sunak set out plans for an economic boost at the summer mini-budget, it did little to help the pound claw back a heightened position against the common currency.
Some of the main plans outlined by Mr Sunak include a job retention scheme bonus for employers who bring back furloughed individuals, the removal of stamp duty for homes under £500,000, a “kickstart scheme” for young people looking for work, and meal vouchers to help pubs and restaurants gain back customers.
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At last night’s briefing, Mr Johnson announced further areas of the economy set to open up, including nail salons, tattoo parlours and gyms.
Holidays are also back on for Britons, with the government giving the green-light to quarantine-free travel to a number of destinations.
Further countries are anticipated to be added to the list in the coming weeks.
For Britons heading on a European adventure, the Post Office Travel Money, along with many other travel money bureaus, has reopened its doors.
The Post Office is currently offering €1.0719 for amounts of £400 or more and €1.0930 for amounts of £1,000 or more.
Britons are advised to shop around to find the best rates, or consider using a credit or debit card with good international rates.
Financial pro Martin Lewis suggested opting for a Starling Debit Card.
“If you want a card that you don’t need to be credit-scored on, you’d probably be better off with the Starling Debit Card which is fee-free and if you don’t get the overdraft it does a light credit search on you rather than the full credit check and is easier to get,” he explained.
“It pretty much gives you just a little bit over the spot rate when you spend abroad.”
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