We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
The pound to euro exchange rate notched “a touch higher” yesterday, said experts. However, GBP continues to remain within its recent range. Post-Brexit trade talks still dominate the currency.
Today, with informal discussions taking place, the markets will have an ear to the ground regarding any headlines as the October 15 deadline nears.
The pound is currently trading at 1.0991 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.
“Sterling tacked a touch higher against the euro on Thursday,” said Brown.
“Though it remains well within its recent range, with upside capped around 1.1040, making for rather boring trading conditions in a range slightly below that mark.
“Today, markets will pay close attention to any headlines emanating from informal UK-EU trade talks, as we move towards the ‘soft’ 15th October deadline.”
Jeremy Thomson-Cook, Chief Economist at Equals Money shared his insight on the latest GDP figures today.
“So much for the V-shaped recovery,” he said. “The UK GDP data released this morning shows August’s rate of growth fell to a third of what it was able to reach in July, confirming that the UK’s recovery is not V-shaped.
“Services, manufacturing and construction all declined in August from the previous month’s measure; a sure-fire sign that the initial figures which suggested a double-digit growth recovery were actually more a function of just how much growth had fallen during the wider lockdown.
“Right now, the UK economy has little to no momentum.
“The road to recovery is going to be a long and slow one, especially given the belief that more and more of the services industry will face greater lockdown protocols in coming weeks.
“It is also clear, therefore, that government support for business needs to be ramped up further or this winter will be a lot tougher than it needs to be as UK businesses and consumers grapple with the triple threat of a stagnant economy, the denouement of Brexit and the pandemic.”
George Vessey, UK Currency Strategist, Western Union Business Solutions, shared his expert opinion on the pound and Brexit.
Vesesey said: “UK PM Boris Johnson expects the details of a UK-EU trade deal to be clear by the time the EU summit comes around next week, but the EU recently stated it is willing to let talks run on until November, perhaps even December, prepared to call Mr Johnson’s bluff of walking away from talks.
“Significant differences remain between the two sides, particularly on fisheries and state aid and if a landing zone isn’t reached by the 15th then all eyes will be on the UK and whether it steps away and prepares to exit the bloc’s single market and customs union without a deal.
“Historically, no-deal fears have sent sterling tumbling fast, but there appears a sense of Brexit fatigue, with market participants still clinging on to a last-minute agreement.”
“Any signs of an accord would likely send sterling a lot higher, but rising COVID cases, weakening recovery prospects and possibly negative interest rates in the UK could limit GBP upside potential.”
So what does this all mean for your holidays and travel money?
The Post Office is currently offering a rate of €1.0587 for over £400, €1.0740 for over £500 or €1.0795 for over £1,000.
Source: Read Full Article