Pound on a ‘knife-edge’ as US election race & Brexit dominate the exchange rate

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

The pound to euro exchange rate remains somewhat steady today in light of a number of major global developments. According to experts, it has simply moved “sideways overnight”, while US election votes are counted.

Once the presidential candidate with the most votes has been answered, it may have a dramatic impact on sterling.

However, traders are also keeping their eyes closer to home.

Post-Brexit trade negotiations are raging on, but may well be drawing to a close soon.

Decisions made by EU and UK leaders are likely to have a major impact on the pound in the coming weeks and months.

The pound is currently trading at a rate of 1.1152 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX said: “Despite the presidential election being on a knife-edge, and no result yet being known, sterling-euro has simply moved sideways overnight, unfazed by developments across the pond.

“A similar story is likely to continue today, though it will be worth keeping an eye on any developments in the post-Brexit trade talks, which appear to be inching towards a conclusion.”

Michel Barnier, the European Commission’s Head of Task Force for Relations with the United Kingdom, warned on Sunday that there is still “much to be done” to achieve a deal.

Pound to euro exchange rate: GBP ‘softens’ as US election looms [GRAPH]
Christmas holidays: Expert’s bleak warning for December travel [INTERVIEW]
TUI, easyJet holidays & Jet2 refund updates [UPDATE]

Fishing continues to be a stumbling block for both sides.

“An important point to consider is that the British Pound is a risk-on currency, which depreciates significantly in periods of elevated risk aversion and price volatility,” said George Vessey UK currency strategist for Western Union Business Solutions.

He points out that the winner of the US election will undoubtedly have an impact on GBP.

Despite the rapidly changing exchange rate, many Britons may urgently need to change back their travel money, after Prime Minister Boris Johnson implemented a travel ban for the UK.

From November 5 to December 2 Mr Johnson is making most parts of “normal life” illegal under a second lockdown.

This includes mixing with other households, jetting off on holiday and even going on a domestic break here in the UK.

The rules have also forced “non-essential” shops to close.

Britons with unused travel currency are normally advised to try their best to shop around in order to secure the best rates.

Yet, with high street travel money shops closing their doors for the coming weeks of lockdown things may not be so simple.

“Savvy consumers should shop around before they change currency back to make sure they’re getting the best offer available and not losing too much money in the process,” Ian Strafford-Taylor, CEO of Equals (formerly known as FairFX) told Express.co.uk.

“If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then,” added Strafford-Taylor.

“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether.”

Source: Read Full Article