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The pound euro exchange rate remained largely unmoving yesterday due to a lack of Brexit “volatility”. It’s likely that the pair will remain that way until Thursday when the EU Council summit will take place. Currently, the pound euro exchange rate is being driven by Brexit uncertainty as the end of the year approaches.
According to an EU official, if a deal is not struck by November 19, Brussels will put forward a contingency plan to prevent a cliff-edge scenario set out in the case of a no-deal exit.
If there is not a deal in place by December 31, the UK will leave the EU without a trade deal and will trade on World Trade Organization (WTO) terms with the EU where tariffs could be in place on most UK goods.
The pound is currently trading at 1.1150 against the euro, according to Bloomberg at the time of writing.
This is below yesterday’s rate of 1.1154 when the pound gained against the euro.
Michael Brown, currency expert at Caxton FX, an international payments and foreign exchange firm, spoke to Express.co.uk about the latest figures this morning.
He said: “Sterling-euro remained as still as a millpond yesterday, with the market remaining on alert for any Brexit headlines, but a lack of news meaning a consequent lack of volatility.
“The same theme is likely to dominate today, as we inch closer to Thursday’s EU Council summit, and towards crunch time in the talks.”
George Vessey, UK Currency Strategist, Western Union Business Solutions commented on the current exchange rate.
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He said that since Brexiteers like Dominic Cummings and Lee Cain have left Downing Street, hopes of a trade deal between the UK and the EU have risen.
Mr Vessey said: “Hope of a UK-EU trade deal have lifted slightly since ardent Brexit supporters left Downing Street last week.
“The same set of core issues that have divided trade talks since Britain voted to leave in 2016 still remain unresolved, but if a deal is struck by this Thursday, sterling could climb higher.
“Both the British Pound and the Euro drew strength from signs that progress had been made over the weekend – both climbing against the US Dollar.”
However, Mr Vessey said that time is running out for a deal to be agreed and put in place.
He added: “The clock is ticking though as the time needed to ratify an accord continues to slip away.
“Nevertheless, the odds still appear stacked in favour of a deal being done, and $1.35 could be on the cards for GBP/USD, whilst €1.15 could be a topside target for GBP/EUR before year-end.
“Although November 19 has been assigned the new deadline whereby EU leaders will meet to discuss any preliminary trade deal, rumours are circling that an extraordinary summit in December could still take place, bringing Brexit right down to the wire.”
What does this mean for travel money?
Post Office Travel Money is currently offering a rate of €1.0747 for over £400.
For a spend of £500 or more, today’s online rate currently stands at €1.0904.
And finally, a spend of £1000 or more will get you a rate of €1.0959.
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