Brexit: Redwood warns of 'EU tentacles' without UK control
Brexit trade negotiations are pushing ahead in the final days before the end of the UK’s transition period. Though officials have until December 31 to conclude talks with a resolution, some experts are suggesting the current “silence” could be “good news”.
Though there seems to have been a little breakthrough in the way of a deal being struck, experts believe there remains “a glimmer of hope” an agreement will be reached in time.
In the past, the hope of a deal has seen the pound gain strength.
This appears to be the case at present.
The pound is currently trading at a rate of 1.1059 according to Bloomberg at the time of writing.
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Currency expert Michael Brown of Caxton FX told Express.co.uk: “Sterling gained further ground against the euro yesterday, as the market interpreted the silence from Brexit talks in Brussels as a sign of progress being made.
“This ‘no news is good news’ feeling should continue for the pound today, though as always the Brexit mood music can change very quickly indeed.”
It was further backed up by George Vessey, UK currency strategist at Western Union Business Solutions.
“There remains a glimmer of hope that a post-Brexit trade deal will be secured before year-end and the British Pound is being supported by this optimism,” he said.
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“It was no surprise to witness trade talks extended after the soft Sunday deadline but the lack of clarity on a future deadline suggests this could go down to the wire.”
He continued: “EU Brexit negotiator Michel Barnier stated a deal was still possible, but in order for ratification, the pact needs to be secured within the week, and UK MPs are preparing to potentially pass legislation close to Christmas.
“Both sides are said to be inching forward in designing a mechanism that would preserve a ‘level playing field’ between British and European companies.
“The ever-changing mood in Brexit talks has injected volatility into the pound over recent weeks and traders are bracing for more right until the end of the year.
“The short-term currency forecasts remain the same – a deal would see a sterling rise, possibly 2-3 percent, but a no-deal could see it fall up to 10 percent in the near future.”
Travel money experts from FairFX say these fluctuations are why Britons should be aware of relevant developments and how they may impact the amount of international currency they receive.
Ian Strafford-Taylor, CEO of FairFX said: “By the start of 2021, British holidaymakers will not only be experiencing post-Brexit travel for the first time, but they will also be contending with the latest travel restrictions, rules and regulations as a result of COVID-19.
“Now more than ever holidaymakers need to be aware of what the pound is doing and how it is responding to the world around us if they want to get the most of their money in the new year.”
“The pound is currently being hit by the double-whammy fallout from COVID-19 and the Brexit transition period coming to an end, and both of these huge events which will not only change where people think about going on holiday but also how they spend their travel money when they get there.”
According to the experts, there are some destinations where Britons will get more for their money.
The experts at FairFX unveiled a top ten list of destinations where they predict the pound will go further in 2021.
The top ten destinations include:
6. Dominican Republic
7. Sri Lanka
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