Pound euro exchange rate in ‘world of its own’ & ignores global news – travel money latest

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The pound to euro exchange rate has been in a “world of its own” this week, said experts. Major developments have occurred around the world over the last few days including Joe Biden being elected the next US president and promising news of a successful COVID-19 vaccine being rolled out. However, GBP seems to have ignored it all.

Instead, the pound euro rate continues to focus on Brexit talks.

Looking ahead at today, it is likely this “waiting game” will remain in play.

The pound is currently trading at 1.1152 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.

“The sterling-euro cross remains in something of a ‘world of its own’,” said Brown.

“It ignored most global developments, including yesterday’s promising news on a potential coronavirus vaccine.

“Instead it trod water in the mid-1.11s waiting, and waiting, and waiting, for some fresh news from the post-Brexit trade talks.

“That waiting game will likely continue today.”

George Vessey, currency strategist at Western Union, shared his insight into the final phase of Brexit talks.

“Talks between the UK and the EU resume this week as both sides try to reach an agreement ahead of the mid-November deadline to ratify any accord before the end of the transition period this year,” said Vessey.

“Sterling remains supported for now by increased global risk appetite because of the US election, but Brexit uncertainty will likely steer the pound from here.

“With only a week left to bridge major points of contention, such as fair competition, especially over state aid rules; and fisheries, both sides appear more willing than ever to reach an agreement.”

He added: “Despite the 40 percent probability of a no-trade deal scenario according to Oxford Economics, the market believes a bare-bones trade deal will be secured.

Coronavirus and the lockdowns taking place across the planet also continue to have a bearing on the exchange rate.

“The next few months are gearing up to be tough and as long as economies continue to run at reduced capacity, the chance of a swift economic rebound continues to fade,” said Vessey.

“Ahead of the US election, the Euro was under significant selling pressure amid the European lockdown concerns and growing expectation that the Eurozone economy faces another costly downturn.

“The outlook in currency markets is unclear as a result because demand for safe-haven assets could swell if pandemic woes start to overshadow the post-Trump world.”

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

Post Office Travel Money is currently offering a rate of €1.0691 for over £400, €1.0846 for over £500 or €1.0901 for over £1,000.

It’s important to monitor the exchange rate to make sure you buy your foreign currency at the optimum time.

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