The pound to euro exchange rate has remained largely in the same range over the last few days as Brexit talks continue to be in a stalemate. Today, a video conference is expected between members of the European Council, although Brexit is not officially on the agenda. Sterling made some gains yesterday, and markets seem to be confident that a Brexit trade deal between the UK and the European Union will be made in due course.
The pound has often rallied when positive news emerges of a possible deal being agreed.
Today, the pound is currently trading at 1.1175 against the euro, according to Bloomberg at the time of writing.
This is above yesterday’s rate of 1.1174.
Michael Brown, currency expert at Caxton FX, an international payments and foreign exchange firm, spoke to Express.co.uk about the latest figures this morning.
He said: “Sterling notched its second straight gain against the euro yesterday, though has pulled back overnight, as the market appears to grow increasingly optimistic about the chances of a post-Brexit UK-EU trade deal being struck.
“As has been the theme so far this week, Brexit rumours and reports will continue to drive the pound today.”
George Vessey, UK Currency Strategist at Western Union Business Solutions commented on recent developments regarding the exchange rate.
He said: “Another Brexit deadline comes and goes as UK-EU trade talks drag on.
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“On Friday, EU negotiators are currently scheduled to update member states on the progress of post-Brexit trade talks.
“Despite positive tones from the UK this week about an expected deal by next Tuesday, Europe’s leaders are demanding no-deal plans are revealed to help businesses with their contingency planning.
“Although the market is pricing in a Brexit deal and many analysts are placing anywhere from a 60 percent – 90 percent probability of a trade deal being secured before year-end, there is growing demand from business leaders on both sides of the Atlantic to see the plans for a no-deal scenario.”
Mr Vessey also said that while the euro will be hit by a hard Brexit, it’s more likely to benefit than GBP.
“The Times reported that Europe’s leaders are demanding the European Commission publish no-deal plans in the event this worst case scenario unfolds simply due to time running out.
“Such an outcome would exacerbate the already vulnerable economic environment, disrupt delicate supply chains and likely shock financial markets.
“Although the euro would be hit by a hard Brexit too, risk aversion would probably benefit the more liquid common currency over the British Pound.
“The large current account surplus compared to the UK’s deficit is another reason why GBP/EUR could tumble, potentially towards €1.05 in this instance.”
What does this mean for travel money?
Post Office Travel Money is currently offering a rate of €1.0768 for over £400.
For a spend of £500 or more, today’s online rate currently stands at €1.0924.
And finally, a spend of £1000 or more will get you a rate of €1.0980.