Pound to euro exchange rate sees ‘biggest one-day gain since June’ – will you buy euros?

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The pound to euro exchange rate saw the most improvement in one day than it has done in three months on Wednesday. GBP’s rise was thanks to the euro’s “broad-based weakness,” said experts. So what does today have in store for sterling and the exchange rate?

The Bank of England are due to make an announcement today.

Policy setting are unlikely to change but, as experts warn, GBP is more likely to be motivated by political forces.

The pound is currently trading at 1.0991 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.

The Bank of England are due to make an announcement today.

Policy setting are unlikely to change but, as experts warn, GBP is more likely to be motivated by political forces.

The pound is currently trading at 1.0991 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 notched its biggest one-day gain against the euro since June yesterday,” said Brown.

“[This came] amid broad-based weakness in the common currency, and a position squeeze on short sellers forcing the pound higher and higher.

“Today, attention will be on Threadneedle Street, where the BoE are expected to keep all policy settings unchanged, but paint a more downbeat picture of the economic outlook.

“Nevertheless, sterling is more likely to be driven by political, rather than policy, developments.”

Vessey continued: “Even though the bill, which if passed by Parliament would breach international law, has rocked sterling sentiment amidst increased fears of a no-deal Brexit, all hope is not lost.

“Tentative concessions on fisheries were made by the UK in the last round of trade talks and the EU is looking to extend clearing of Euro derivatives by the City of London for another 18 months.

“These smalls steps towards a compromise are likely supporting the pound for now.

“Nevertheless, if a deal isn’t reached by the EU summit on October 15, the probability of a no-deal scenario is likely to increase, and history would suggest GBP/USD could fall to $1.20, whilst GBP/EUR may threaten levels closer to parity in this instance.”

So what does this all mean for your holidays and travel money?

The Post Office is currently offering a rate of €1.0484 for over £400, €1.0637 for over £500 or €1.0691 for over £1,000.

For those unsure about how to monitor the exchange rate it can be advisable to use tracking tools to make sure you’re getting your holiday money at the right rate for you.

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