Pound to euro exchange rate fails to respond to US election as it waits for Brexit talks

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The pound to euro exchange rate is set to be mainly driven by the ongoing post-Brexit talks. These have entered a vital phase once again, forcing the markets to play a “waiting game,” said experts. Looking ahead, very little new data is out to shift GBP until a Brexit breakthrough emerges.

It is clear Donald Trump’s defeat over the weekend did little to impact sterling.

The pound is currently trading at 1.1089 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 remains in a land of its own against the euro, ignoring anything and everything to do with the presidential election,” said Brown.

“Instead it trudged along in a sideways manner waiting until some kind of fresh developments in the post-Brexit trade talks.

“Those talks, which have once again entered a crucial phase, will remain the primary driver of the pair this week.

“There is some rather uninspiring data docket in store, leaving market participants playing something of a waiting game.”

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

Post Office Travel Money is currently offering a rate of 1.0659 for over £400, €1.0814 for over £500 or €1.0869 for over £1,000.

If you’re looking to buy holiday money for a trip after lockdown ends then monitoring the exchange rate is wise.

“You need to stay on top of exchange rates to understand how far your money will go overseas,” Hamish Muress, currency expert at international payments company OFX, told Express.co.uk. “Exchange rates are always changing.

“It’s important to know where you stand, but you don’t have to watch the markets yourself.”

Some currency specialists, including OFX, let customers sign up to daily market commentary and exchange rate updates.

What’s more, it may be worth speaking to a currency expert to understand how the pound is performing and get a sense of what might happen next.

If, however, you’ve found yourself lumbered with foreign currency that you no longer need due to cancelled holidays, then think wisely about how to proceed.

Shon Alam, founder of new travel money buy and sell service Bidwedge, explained that if you think you will be able to use the currency again in the near future then it’s worth hanging on to it.

But, if there’s no trip abroad on the horizon, it’s best to exchange.

“We all do it – get home from a trip and chuck our change in the drawer ready to use for next time, but by the time next time comes around, we always forget about it,” he said.

“According to ABTA in a 2018 report, Brits each took 1.6 holidays abroad, so, in reality, we actually only go overseas around once a year on average. So don’t waste it – change it!

“If you are a regular traveller – for example if you travel monthly or for business – then I would keep currency that you are likely to use again if there are particular locations you travel to regularly.

“However, any longer than that, and I would turn it back into my home currency.”

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