Pound to euro exchange rate: GBP plummets in biggest one-day loss since March

The pound to euro exchange rate has suffered a rough week, with sterling hit with losses almost daily. It comes as concerns over a Brexit deal continue to mount.

The pound is currently trading at a rate of 1.0831 against the euro according to Bloomberg at the time of writing.

Following Prime Minister Boris Johnson’s decision to unveil a “controversial” Internal Market’s Bill, the UK came under fire.

In recent days the government has admitted this Bill may break some international laws, yet continue to push ahead with it.

However, EU leaders have warned that faith in the UK is wavering.

European Parliament President David Sassoli warned that “trust and credibility” will be lost if the UK refuses to continue with its commitments.

Ireland’s Foreign Minister Simon Coveney added the UK’s approach was “hugely problematic and illegal”.

Speaking exclusively to Express.co.uk, Michael Brown currency expert of Caxton FX said: “Sterling recorded its biggest 1-day loss against the euro since March yesterday, falling to its lowest levels in almost six months in the process, as the pound took a battering amid another round of Brexit-linked uncertainty, and the euro tore higher after the ECB’s lack of jawboning gave the bulls the green light to take control of the currency.

“Today, given the rather quiet data calendar, investors will continue to pay close attention to incoming headlines – especially around Brexit – while it would not be a surprise to see some risk being taken off the table before the weekend.”

Though there are no major trade talks or announcements anticipated today, it is likely Brexit will continue to lead the way for sterling.

“The British Pound dropped to its lowest levels since July against multiple currencies yesterday as no-deal Brexit reared its ugly head once again,” added George Vessey, UK currency strategist for Western Union Business Solutions.

Spain: Soldiers sent to Balearics and Canaries to track COVID cases [INSIGHT]
Dubai holidays: FCDO issue important travel warning to Britons  [WARNING]
Holiday destinations next to get the axe after Greek island chaos [UPDATE]

“The pound extended its decline yesterday following the release of the UK government’s Internal Market Bill, which allows the UK to unilaterally overwrite parts of the Brexit Withdrawal Agreement.

“The Conservative government admitted the bill would break international law, which not only threatens UK-EU trade relations but also UK relations beyond Europe.

“Moreover, Brexit has reignited Scotland’s desire for independence and while the government has refused to allow a referendum, pressure looks to be increasing, which poses another risk to UK economic stability and thus sterling’s value.”

So what does this mean for travel money?

Though travel corridors are once again rapidly changing, there may still be Britons who have impending plans to jet off to Europe in the coming weeks.

For them, staying up-to-date on the headlines is absolutely crucial.

Along with any Brexit-related developments, would-be travellers should also bear in mind any coronavirus updates which could impact exchange rates.

Holidaymakers are also urged to plan in advance if they want to get the most bang for their buck.

Leaving money to be changed at the last minute could result in sky-high fees, as CEO of FairFX (part of the Equals Group), Ian Strafford-Taylor, told Express.co.uk.

“When it comes to getting the most out of your hard-earned holiday money, exchange rates make all the difference,” he said.

“If you buy at the wrong time or from the wrong place, you could miss out on hundreds of pounds.”

He continued: “With Coronavirus and a looming Brexit deadline, there is a lot of uncertainty ahead, which means the pound is vulnerable to further fluctuations.”

The expert warns not to change money at the airport.

“They offer notoriously poor rates, leaving holidaymakers out of pocket once again,” explained the expert.

“Our previous investigations have found some airports offering rates as much as 29 percent lower than the market rate which is a lot of money to lose out on just for leaving it to the last minute.”

Source: Read Full Article