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The pound to euro exchange rate has remained in a “familiar” range of late largely due to a lack of figures and new stimulus. Post-Brexit trade talks have ground to a halt in recent weeks with the main sticking points being fishing and state aid. The UK has until the end of the year (December 31) to reach a deal with the EU, otherwise, the UK will leave the bloc and trade on similar terms to the US.
Post-Brexit trade negotiations have been a key driver in the pound to euro exchange rate in recent weeks.
The pound has often rallied when positive news emerges of a possible deal being agreed.
Today, the pound is currently trading at 1.1174 against the euro, according to Bloomberg at the time of writing.
This is above yesterday’s rate of 1.1150.
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-euro had the briefest of rallies yesterday, after Bloomberg recycled some old news indicating that a UK-EU trade deal may be reached next week, before once more settling down to plod along sideways in its now all-too-familiar range.
“The pound will remain narrative driven today, with this morning’s inflation figures mattering very little, and traders remaining alert for any further Brexit headlines.”
George Vessey, UK Currency Strategist at Western Union Business Solutions commented on recent developments regarding the exchange rate.
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He said the euro could shift higher against the dollar which is currently “beleaguered”.
He said: “Despite the uncertain path ahead regarding the EU’s stimulus fund, the euro has remained defiant and looks poised for another shift higher against the beleaguered US Dollar.
“EUR/USD has climbed for nine out of the last 11 trading days and may attempt a run at a new two-month high atop $1.19 this week.
“Stimulus measures by central banks and governments remain critical during this second wave of coronavirus infections.”
Mr Vessey also said that news of successful coronavirus vaccine trials has had a positive impact on financial markets.
“The vaccine news has buoyed risk sentiment in financial markets, but the reality is that economies are still going to suffer in the short-term as a result of stringent social distancing measures,” he added.
He continued: “The news that the EU’s €750billion stimulus package is being blocked by Hungary and Poland, is therefore significant.
“The aim of the new regulation was to ensure compliance with the principles of a rule of law and to enable infringements to be punished, which the two countries spoke out against.”
“Nevertheless, from a technical standpoint, the euro could still make further gains this week.
“Should EUR/USD extend through $1.19, this could drag on GBP/EUR, which is looking overstretched.
“The weekly chart indicates upside exhaustion in GBP/EUR, though the pair hasn’t quite fallen back into its 8-month descending channel.”
What does this mean for travel money?
Post Office Travel Money is currently offering a rate of €1.0743 for over £400.
For a spend of £500 or more, today’s online rate currently stands at €1.0899.
And finally, a spend of £1000 or more will get you a rate of €1.0954.
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