Pound to euro exchange rate: Sterling increases – but remains at mercy of Brexit – Express

The pound to euro exchange rate remained subdued yesterday due to heightened uncertainty over the UK’s future as Brexit nears. There are fears that the UK will be unable to strike a fresh Brexit deal which is impacting GBP. On Friday the pound soared to its best rate since May as a result of UK-EU talks entering the ‘tunnel’ – a period of intense, confidential negotiations between both sides, aimed at finalising a deal before the EU Summit. However, “euphoria” over this is starting to wane, cautioned experts. Sterling has risen once again today with the focus moving forward on political developments.

The pound is currently trading at 1.1502 against the euro, according to Bloomberg at the time of writing.

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

“Sterling struggled against the euro on Monday, as a fresh trading week began with lingering concerns over the UK’s ability to strike a fresh Brexit deal, as some of Friday’s euphoria over talks entering the ‘tunnel’ stage began to wane,” said Brown.

“The day ahead sees focus likely to remain on political developments, with this morning’s labour market data set to be largely ignored by market participants.”

Prime Minister Boris Johnson has reportedly warned colleagues that a “significant amount of work” was still needed in order to secure a Brexit deal before the end of the month. 

President of the European Commission, Jean-Claude Juncker fuelled uncertainty with his own ambiguous comments, stating: “It’s up to the Brits to decide if they will ask for an extension.

“But if Boris Johnson were to ask for extra time – which probably he won’t – I would consider it unhistoric to refuse such a request.”

Looking ahead at the week, any sign of an emerging UK-EU Brexit deal likely to spark another buying frenzy in the pound.

What does this mean for British holidaymakers wanting to buy travel money for their trips away?

The Post Office is currently offering an exchange rate of €1.0982 for over £400 and €1.1198 for over £1000.

Britons are being urged not to let any leftover currency from holidays go to waste. According to peer-to-peer travel money provider WeSwap, a staggering £819 million of foreign currency is sitting in coin-jars and piggy banks nationwide.

CEO of WeSwap, Jared Jesner said: “Holidays are more often than not the biggest event of the year for British families, however, there are many hidden costs that arise when abroad which many holidaymakers may not think about – and this can prove to be costly.

“Our research confirms that a huge amount of money goes to waste every year, but holidaymakers – especially those who are going away for the October half-term – should rest assured that there are ways to ensure their hard-earned money stretches as far as possible.

“For example, buy back services allow customers to return excess currency and swap it back into pounds – this is particularly useful as the pound’s value has been so inconsistent recently.

“Swapping holiday currency back to Sterling may get you more money than you first thought.

“Also, it is worth bearing in mind that it is best to find free ATMs while abroad. You can also avoid further charges by withdrawing more money less often. And if an ATM or merchant asks if you want to be charged in the local currency, always say yes.”

MoneySuperMarket have shared their travel advice on how Brexit will affect Britons’ holidays. “Given the turmoil, it’s challenging to predict what would happen post-Brexit,” Anna Sant, travel insurance expert at MoneySuperMarket, said.

“For the time being, anyone travelling to EU countries should make sure they’ve got the right travel insurance cover and know the rules about passports and driving abroad.

“Taking out travel insurance when you book your holiday also means you’re covered if you need to cancel – whether that’s due to illness or injury, a family bereavement or another emergency.”