The pound to euro exchange rate sunk on Tuesday after the EU refused to accept the latest UK offer on access to its fishing waters, in the latest Brexit news. Concurrently GBP was negatively impacted amid the travel chaos as multiple countries across the globe moved to ban UK flights due to a new strain of covid identified in the UK. The pound is currently trading at 1.1021 against the euro, according to Bloomberg at the time of writing.
Sterling went on to slightly recover with its losses apparently contained.
Jane Foley, head of FX strategy at Rabobank, commented: “While a Brexit deal would be a huge move forward, any relief rally in the pound is likely to be tempered by the reality that many sectors will remain outside the reach of any deal and by the concerns over the impact on the economy of the current tier 4 restrictions and border closures.”
Brexit talks are set to continue this week for two days and a half, ending on Thursday afternoon.
David Frost, the UK’s chief Brexit negotiator, said: “We have scheduled lots of time for discussions, as we should at this point in the talks.
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“However, the EU insists we change our position on state aid and fisheries if there are to be substantive textual discussions on anything else.”
EU officials said Brussels’ chief negotiator Michel Barnier would also speak to the European Parliament’s Brexit group, adding that cutting the value of the bloc’s catch in UK waters by 35 percent from 2021 would be too high.
Fishing rights and quotas have been one of the main reasons why talks have been gridlocked since the UK left the EU back in January.
Prime Minister Boris Johnson has continued to claim the UK would “prosper mightily” if the country does not secure a deal.
French Europe Minister Clement Beaune said the “successive proposals” from the UK on fishing do not respond to EU “priorities and demands”.
He said: “There have been successive proposals from the UK sometimes on fishing, that don’t respond to European priorities and demands.
“Difficulties remain, in the fishing sector – but not only, so it would be an error of judgment and unacceptable stigmatisation to say that a few countries or a few sectors are blocking.”
So what does all this mean for your holidays and travel money?
Post Office Travel is just one of many foreign currency providers.
The service is currently offering a rate of €1.0565 over £400, €1.0719 for over £500 or €1.0774 for over £1,000.
However, with holiday plans currently hurled in turmoil as a result of the travel bans, many Britons may be looking to exchange unused foreign currency.
Doing so now when the pound is down can be a savvy move.
“Typically, travellers tend to hold on to their remaining foreign currency, as it generally isn’t worth converting smaller sums of money due to poor exchange rates,” founder of currency exchange platform Bidwedge, Shon Alam, said.
He added: “Taking advantage of this situation to exchange the foreign currency that has been lying at the bottom of the drawer for years, means that you could get more pounds in return than you previously would have done.”
If you’re unsure about rates, help is at hand.
Some currency specialists let customers sign up to daily market commentary and exchange rate updates.