Pound to euro exchange rate: Sterling notches ‘fourth straight gain’ against the euro

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Yesterday, Prime Minister Boris Johnson announced a new “three-tier” coronavirus system for England which will see various regions in England classified as being on “medium”, “high” or “very high” alert. The move saw the region of Liverpool City immediately faced with the toughest restrictions. As well as the coronavirus pandemic, post-Brexit trade talks have remained centre-stage.

The talks have largely been in a stalemate over the last few months, leading to “stiff resistance” on the exchange rate.

The pound is currently trading at 1.1066 against the euro, according to Bloomberg at the time of writing.

This is above yesterday’s rate of 1.1046 which was just shy of 1.1050.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

“Sterling notched a fourth straight gain against the euro yesterday,” said Brown.

He added: “But still couldn’t break above the stiff resistance at 1.1050, with the bears continuing to control that level, and a break above unlikely barring a Brexit breakthrough.

“Apart from this morning’s labour market data, the aforementioned Brexit talks will once more be the market’s primary focus today.”

George Vessey, Currency Strategist at Western Union said the Prime Minister is looking at an Australia-style trade deal.

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He said: “Sterling has climbed 2.8 percent from its two-month low of 1.2676, breaking above 1.3000 on Friday.

“UK Prime Minister Boris Johnson has indicated he is willing to proceed with an Australia-style trade deal if there’s no deal by October 15, adding pressure on Germany to bridge the gap.”

He continued: “Friday’s climb, assisted by the broadly softer dollar, has the charts suggesting further gains despite uncertainty surrounding UK and US fundamental drivers.

“While the US dollar remains pressured near multi-day highs, fears of a no-deal Brexit and the economic burden of the coronavirus (COVID-19) remain.

Vessey explained that there is optimism surrounding the likelihood of a deal being made, however, there is still a chance the UK could emerge with no deal at the end of the transition period.

He added: “Both the European Union and UK negotiators show optimism in getting a deal progressed, however, the major issues of the EU’s level playing field for government subsidies, workers’ rights and environmental issues and the UK’s sovereignty concerns remain.

“While both sides want a deal, a compromise remains elusive, leaving no deal a real possibility, which would likely hit the UK economy hard.

“Johnson has set a deadline of October 15, the date of the EU summit for agreement on a deal, and an EU diplomat said on Friday that Chief Negotiator Michel Barnier wants those concessions from Britain before entering the final intense phase of negotiations on a trade deal.

“Johnson told German Chancellor Angela Merkel on Sunday that progress must be made in post-Brexit trade talks with the European Union in coming days to bridge the ‘significant gaps’.”

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

The euro is the currency of 19 of the 28 EU member states.

Before converting your money, make sure the country you are travelling to does trade in euros.

The typical pound to euro exchange rate is €1.12 for every British pound.

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