Pound to euro exchange rate: Sterling has 'brief surge' – may dip if Brexit deal rejected

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The pound to euro exchange rate is currently 1.1578, according to the latest data from Bloomberg this morning. Sterling enjoyed good fortune yesterday thanks to the emergence of a Brexit deal agreement between PM Boris Johnson and the EU. However this was short-lived, with the pound losing some of its momentum amid concerns some MPs will attempt to block the deal. What does this mean for holidaymakers hoping to exchange their money today?

Michael Brown, Senior Market Analyst, Caxton FX said: “Sterling traded in a choppy manner once again on Thursday, with the announcement of a Brexit deal met with a brief surge higher to 5-month highs; before some of the wind was taken out of the pound’s sails as concerns emerged that the proposed agreement may not be approved by MPs.

“Parliamentary arithmetic will be today’s main focus, as market participants attempt to gauge the likelihood of the Prime Minister’s deal being approved in the Commons on Saturday.”

While there is elation in some quarters that Boris has finally agreed a deal with the EU, others came out to criticise elements of the proposal, causing concern the deal will be rejected by Parliament.

Tomorrow’s vote on Boris Johnson’s Brexit deal will be “pretty close”, shadow chancellor John McDonnell has admitted.

Jeremy Corbyn’s right-hand man told Sky News: “I don’t believe it will pass, I think it will be defeated but… the numbers are going to be pretty close.”

The Post Office is currently offering a rate of 1.1143 for over £400 and 1.1362 for over £1000.

Those thinking to withdraw cash while abroad are being warned to be careful by banking experts.

Cash withdrawals using a debit card typically deduct up to three percent of what is taken out or charge a minimum fee of up to £2.

Some credit cards will charge interest for cash withdrawals on top of other fees.

Additionally, contactless payments with a traditional bank or credit card, may be liable to currency and bank charges.

“It’s always worth shopping around,” Norris Koppel, Founder and CEO at banking service Monese.

“There are a growing number of ways that holidaymakers can exchange and spend cash when abroad from using mobile-only alternatives contactless, to pre-paid cards and fee-free banking services.”

Martin Lewis, money saving expert, has advised Britons to make the most of overseas credit cards.

Speaking on Good Morning Britain earlier this month, he said: “If you normally spend abroad on debit or credit cards, while the providers get near-perfect rates, most add an up to three per cent ‘non-sterling exchange rate fee’ on top – meaning something that costs £100 costs you £103.

“Yet specialist overseas credit cards don’t add that fee, so you get the same near-perfect exchange rate as the providers – smashing bureau de change – in every country, every time you go away.

“Just ensure you pay the card off in full each month to minimise the interest.”

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