Pound to euro exchange rate: No new hope for GBP as Brexit oppositions come head-to-head

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When the announcement first came that Brexit trade talks would resume, the pound saw its biggest one-day growth against the euro since March. However, since then sterling remains unchanged, offering little hope of more immediate boosts to come.

Despite this, trade talks will continue to dominate the agenda for traders.

The pound is currently trading at a rate of 1.1071 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX, said: “Sterling traded unchanged against the euro yesterday, as investors waited for news from the restarted post-Brexit trade talks.

“A similar theme is likely to dominate today, with the pound to remain a politically driven currency until near-term uncertainties recede.”

In the last few years, the hope of a deal being struck has seen traders wager in the pound’s favour.

Meanwhile, the threat of a no-deal Brexit has seen catastrophic losses for sterling.

“EU negotiator Michel Barnier acknowledged the UK’s sovereign independence is paramount, which was viewed as a signal that Brussels was ready to compromise. At present, a deal seems more likely than not, despite the gaps in fisheries and level playing field issues that still need bridging,” explained George Vessey, UK Currency Strategist, Western Union Business Solutions.

“Market participants were eager to pounce on any signs of optimism though and the positive soundbites that eventually came out sent traders flocking for the pound.”

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However, he warned: “UK-EU trade talks resume this afternoon, but the worry is that the recent rally may be a classic case of ‘buy the rumour sell the fact’ for the pound and we see sterling actually weaken from here because a limited trade deal would still hurt the fragile UK economy.”

With little certainty as to how things will pan out in the coming days, it may be confusing for Britons who are heading off on a winter sun holiday.

Since Thursday evenings travel corridor update, there are now more European destinations holidaymakers can visit for a quarantine-free getaway.

Britons who are looking to change travel money in the coming days should try to stay as up-to-date on relevant information as possible.

“With so much change in the world right now, it’s hard to predict when exchange rates will be at their best,” Karen Gee, business development director for foreign currency provider Spendology told Express.co.uk.

“There’s unprecedented volatility in the markets.

“So for someone who likes to get involved and do the research you can track the market yourself, wait until exchange rates increase and buy your currency when you judge it’s the best time bearing in mind your departure date.”

This is why planning in advance and comparing the exchange rates on offer from different providers is crucial.

“Keeping an eye on currency markets is the key to making sure you get more for your travel money,” Strafford-Taylor explained Ian Strafford-Taylor, CEO of FairFX (part of the Equals Group).

“Using a prepaid card gives you more control over exchange rates, whether you’re topping up before you travel or while you’re away, protecting you from unstable markets and further fluctuations.”

Pre-paid travel money cards maintain the exchange rate at the time of purchase and allow for spending without any unexpected international fees which may be incurred by credit or debit cards.

The Post Office Travel Money is one high street travel money provider which offers its own travel money card.

The Post Office is currently offering an exchange rate of €1.0686 for amounts of £400 or more, or €1.0896 for amounts of £1,000 or more.

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