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The pound to euro exchange rate showed little change yesterday but has slipped this morning on Tuesday’s opening rate. Post-Brexit talks continue to impact the movement of GBP. Economic data appears to have been ignored by markets, said experts.
Instead, they are waiting for any fresh news from the trade discussions.
This is likely to emerge soon as European Union negotiators head to London today.
The pound is currently trading at 1.0987 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 largely trod water against the common currency yesterday,” said Brown.
“Markets largely ignored economic data and waited for any fresh news emanating from the post-Brexit trade talks.
“With EU negotiators travelling to London today, markets will remain on alert for any breakthroughs, or breakdowns.”
These Brexit talks have served to make the pound ultra-volatile over the past few weeks ahead of a key EU summit on October 15.
Sterling will potentially be provided with further tailwinds if progress is made before this date.
However, it could slump if Brexit talks break down again.
So what does this all mean for your holidays and travel money?
The Post Office is currently offering a rate of €1.0619 for over £400, €1.0774 for over £500 or €1.0829 for over £1,000.
Hamish Muress, currency expert at international payments company OFX, has shared his travel advice and top tips for Britons trying to keep track of currency at this confusing time.
“You need to stay on top of exchange rates to understand how far your money will go overseas,” Muress told Express.co.uk.
“Exchange rates are always changing… whether it’s the ongoing global Coronavirus crisis, the UK’s future outside Europe, or the upcoming US election, there is a seemingly endless stream of things that could affect the value of the pound abroad in the next few weeks and months.
“It’s important to know where you stand, but you don’t have to watch the markets yourself.”
Some currency specialists, including OFX, let customers sign up to daily market commentary and exchange rate updates.
What’s more, it may be worth speaking to a currency expert to understand how the pound is performing and get a sense of what might happen next.
Holidaymakers should also be sure to plan ahead.
“Currency can be unpredictable, and if you’re planning a larger overseas purchase like a big holiday (which I’m sure we all deserve this year!) or are relocating to another country, you’ll want to be sure your money is working as hard as it can,” Muress said.
“There are some useful ways to limit your exposure to exchange rate fluctuations.
“At OFX, we help people set up forward contracts, a tool that lets you lock in today’s exchange rate for future transfers, so you can plan ahead in the knowledge that you’ll be safe from any surprise future dips in the pound’s value.”
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