The pound to euro exchange rate benefitted from a hike yesterday. GBP succeeded in notching “its first gain in three days,” thanks to positive sentiment around Brexit talks. There is hope a deal will soon be reached as the Brexit transition period draws ever closer to an end.
Experts predict that if this happens, the pound will likely rise again.
The pound is currently trading at 1.1069 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling notched its first gain in three days against the euro yesterday,” said Brown.
READ MORE: Business travellers and sports stars among exemptions from quarantine
“It benefitted from more positive sentiment around the post-Brexit trade talks, with the market having now almost fully priced in the prospect of a deal being agreed.
“Despite talks ‘taking a turn for the worse’ late-afternoon Thursday, we still think it likely that an agreement is made, potentially over the weekend, leaving sterling at risk of a significant gap higher at the start of trade next week.”
George Vessey, UK Currency Strategist, Western Union Business Solutions, also shared his insight into Brexit talks and how it impacts GBP.
“Despite the optimism of Brexit deal supporting sterling over recent months, Wednesday’s price action in GBP reflected how sensitive the UK currency is to negative Brexit headlines,” said Vessey.
“GBP/EUR fell to a new one-month low and GBP/USD momentarily dipped under $1.33 yesterday as Brexit trade talks were said to be hanging in the balance.
“The EU’s chief Brexit negotiator, Michel Barnier, warned that trade talks would be thrust into crisis mode if a UK legislation expected next week includes clauses that would breach the existing withdrawal agreement.
“The UK government has shown no sign of backing down from including the clauses.
“Trade deal doubts are resurfacing, yet sterling remains at elevated levels in comparison to its weakness in the build-up to previous Brexit deadlines over the years.”
Post Office Travel Money is one of many popular providers.
The service is currently offering a rate of €1.065 over £400, €1.0805 for over £500 or €1.086 for over £1,000.
Holidaymakers should monitor the exchange rate when buying foreign currency to avoid getting an unfavourable late.
Similarly, you should never buy money at the airport or last minute.