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The pound to euro exchange rate has remained largely in the same range over the last few days as Brexit talks remain in a stalemate. Today, a video conference is expected between members of the European Council, although Brexit is not officially on the agenda. Sterling made some gains yesterday, and markets seem to be confident that a Brexit trade deal between the UK and the European Union will be made in due course.
The pound has often rallied when positive news emerges of a possible deal being agreed.
Today, the pound is currently trading at 1.1175 against the euro, according to Bloomberg at the time of writing.
This is above yesterday’s rate of 1.1174.
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 notched its second straight gain against the euro yesterday, though has pulled back overnight, as the market appears to grow increasingly optimistic about the chances of a post-Brexit UK-EU trade deal being struck.
“As has been the theme so far this week, Brexit rumours and reports will continue to drive the pound today.”
George Vessey, UK Currency Strategist at Western Union Business Solutions commented on recent developments regarding the exchange rate.
He said: “News that a UK-EU trade deal could be signed as early as next Tuesday helped lift sterling higher against major currency peers yesterday.
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“The receding risk rally meant bigger moves were seen against the commodity-linked CAD and AUD, but both GBP/USD and GBP/EUR also rose.
“GBP/USD is on track for its fourth daily gain in a row as it stretches towards the $1.33 handle this morning – a level that has traded less than 10 days during 2020 so far.
“Back in late September, the currency pair was floating around the $1.26-$1.27 zone, meaning over the past 40 trading days, sterling has climbed nearly five percent against the US Dollar.”
Mr Vessey also said that news of a post-Brexit deal has helped boost sterling in recent days.
“Though speculation about a post-Brexit trade deal has helped drive GBP higher, broad-based US Dollar weakness has amplified the move.
“Considering GBP/EUR has only risen 2.2 percent over the same 40-day period, it highlights that this is not solely a Brexit-related surge.
“The euro has staged a huge comeback against the US Dollar this year and this is limiting the upside potential of GBP/EUR.”
What does this mean for travel money?
Post Office Travel Money is currently offering a rate of €1.0768 for over £400.
For a spend of £500 or more, today’s online rate currently stands at €1.0924.
And finally, a spend of £1000 or more will get you a rate of €1.0980.
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