Pound to euro exchange rate: GBP hit 5 month high – can it hold as Brexit talks continue?

The pound to euro exchange rate is currently 1.1538, according to latest Bloomberg data, which is slightly down on yesterday’s peak of 1.1563. Ongoing attempts by Boris Johnson to secure a Brexit deal have seen sterling rally, as the Prime Minister inches closer to getting an agreement with the EU completed. However, with the situation changing swiftly, the markets are unsettled – with analysts unable to confidently predict whether the pound will hold the high it has so far enjoyed. Michael Brown, Senior Market Analyst at Caxton FX, said: “Sterling rallied to a fresh five-month high against the common currency on Wednesday, amid choppy trading conditions, as hopes of a new UK-EU Brexit deal increased.

The pound will continue to react to developing headlines; strengthening if a deal appears close, and weakening if hope of a deal fades

Michael Brown, Caxton FX

“Attention will centre on Brussels today, with EU leaders set to meet to finalise any agreement that has been made in ‘tunnel’ negotiations.

“The pound will continue to react to developing headlines; strengthening if a deal appears close, and weakening if hope of a deal fades.”

What should holidaymakers planning on purchasing currency do – is now a good time to buy euros?

The Post Office is currently offering a rate of 1.1143 for over £400 and 1.1386 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, 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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