Pound to euro exchange rate: Stability of British currency under threat by US ruling – Express

Following another busy few days in the political world, more crucial changes lie ahead which could play a huge part in determining the status of sterling against the euro. Talks between British Prime Minister Boris Johnson and the EU Commission President Juncker gave way to little certainty about post-Brexit policies, resulting in a small dip for the GBP. Luckily, the pound retained most of the strength it gained at the end of last week when the DUP announced they would soften their stance towards the Irish backstop.

Since then, things have remained largely stable.

The GBP is currently trading at 1.128 against the euro, according to Bloomberg at the time of writing.

Despite this, there is more unpredictability ahead, as the Federal Reserve get to work deciding their new monetary policy decision.

Thanks to Johnson’s confidence that the UK will leave the EU on October 31 “deal or no deal” sterling soared against the USD.

The American currency will now face the pressure of today’s Federal Reserve decision, but little is known what affect this may have on the pound to euro exchange rate.

Further turbulence comes in the form of the Supreme Court ruling regarding the PM’s prorogation of parliament in a bid to solidify the UK’s departure from the European Union.

With courts currently in session, ahead of their final ruling on Thursday, this could mean big changes ahead.

Yesterday, the court heard Johnson’s vow to recall MP’s to Westminster should the judge rule his initial actions illegal.

Standing as the representing government lawyer, Lord Keen QC, promised the Prime Minister would “take the necessary steps” to comply with the law.

The final ruling will affect not only Johnson’s fate, but also have huge consequences for the UK’s planned EU departure date.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

He said: “Sterling traded in a tentative manner against the common currency on Monday, settling unchanged as cautious trading conditions prevailed ahead of the Federal Reserve’s monetary policy decision.

“While broader market focus will be on the Fed’s decision today, sterling traders will continue to keep an eye on any developing Brexit headlines, in addition to this morning’s inflation figures.”

With so much uncertainty it’s hard to know how the pound will fare against the euro.

However, the current stability can be enjoyed by Briton’s heading for travel to the European continent.

Speaking with Express.co.uk, Head of UK at International Currency Exchange, Louis Bridger offered some top tips.

He said: “As ever, no one can predict the future, and trying to determine where the pound will be by the end of the week – let alone the end of the month – is tricky due to constant fluctuations.”

“Instead of waiting until you get to the airport or withdrawing from an ATM abroad, I’d recommend ordering your currency in advance using a click & collect or home delivery service to secure the best possible rate and avoid any surprise fees while you’re away.

“As a general rule, you’ll get a much better rate when you order your travel money online.”