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The pound to euro exchange rate was volatile yesterday. However, GBP ended “unchanged” against the common currency, said experts. As has been the case for a while, Brexit continues to be the driving force behind sterling’s movements.
The market has been closely observing the latest developments from the post-Brexit trade talks.
The odds of a deal appear to be rising.
Brexit matters will continue to be in focus today.
The pound is currently trading at 1.0986 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 had a choppy day on Wednesday,” said Brown.
“It ultimately ended unchanged against the euro.
“The market continued to try to latch onto the latest Brexit headlines, as chances of a deal look to be increasing, and the ‘soft’ October 15 deadline looks to be slipping.
“Similar themes will remain in focus today.”
George Vessey, UK Currency Strategist, Western Union Business Solutions, also shared his expert opinion.
“Optimism about a UK-EU trade deal is helping to support the British Pound this week,” he said.
“Negotiations have intensified and both sides claimed significant progress was made last week.”
Vessey continued: “A Reuters report on Wednesday revealed ‘big progress’ had been made last week and the EU confirmed it is ready to let talks play out into November, possibly even December, rather than be cut off at the end of this month.
“This helps alleviate worries about a no-deal Brexit once the transition period expires at the end of December.
“Choppy price action on Wednesday saw sterling fluctuate over 100 pips against multiple currencies, but the overall mood appears slightly more confident about a deal being reached, which is expected to send sterling shooting higher.”
The expert added: “Upside may be limited though given the short-term economic risks that come with Britain cutting close ties with its biggest trading partner.
“Furthermore, money markets are still pricing negative interest rates in the UK before Q3 next year, which is also expected to weigh on the pound.”
So what does this all mean for your holidays and travel money?
The Post Office is currently offering a rate of €1.0587 for over £400, €1.0740 for over £500 or €1.0795 for over £1,000.
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