Boris Johnson arrives in Brussels for final Brexit talks
The pound went through a “choppy” period on Wednesday, with a perceived lack of progression in talks causing some level of pessimism. Yesterday, Sterling was at €1.10 against the Euro, and slipped under $1.33 against the US Dollar. Such a move appears to have been influenced by the uncertainty of trade talks between the UK and European Union.
However, Sterling did somewhat recover when announcements trickled through that the UK would be removing long-debated clauses which breached its Withdrawal Agreement.
It is not just Brexit talks which are the primary focus of the pound to euro discussions looking ahead to today, though.
Instead, experts have gestured towards the European Central Bank as providing further guidance on the matter through actions today.
Michael Brown, currency expert at Caxton FX, an international payments and foreign exchange firm, commented on the latest figures to Express.co.uk this morning.
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He said: “Sterling had a choppy day on Wednesday, before slumping overnight.
“The UK-EU leaders dinner ended with the Brexit can being kicked down the road once more, this time to Sunday.
“Today, while Brexit remains the focus for the pound, the ECB are expected to deliver a significant stimulus package, and deliver their opinion on the value of the euro, which will be a bigger focus of the day.”
At the time of writing, the pound is currently trading at 1.1023 against the euro, according to Bloomberg.
Yesterday’s morning rate saw the pound trading at 1.1056 against the Euro.
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George Vessey, Currency Strategist at Western Union, last night commented on the matter.
He said: “It’s been a choppy start to the week for the British Pound as market participants monitor updates from UK-EU trade talks.
“UK PM Boris Johnson heads to Brussels for a dinner meet with EU president Ursula von der Leyen to try and break the Brexit deadlock.
“Volatility gauges for the pound have soared in recent weeks, reflecting a potentially turbulent few days await.
“The upside risk appears to be outweighed by the downside risk, but the general feeling across financial markets is that a bare bones trade deal will be secured before the end of the transition period this year.”
Mr Vessey, too, gestured towards the European Central Bank as potentially having influence on how things progress.
He added that while pound to dollar has risen to new year highs, pound to euro has remained “anchored” near €1.10 and one percent lower month-to-date.
Mr Vessey concluded: “However, if the forward guidance by the ECB isn’t overly strong, then the Euro could actually climb higher following the ECB’s monetary policy meeting.”
Post Office Travel Money is currently offering a rate of €1.0614 for over £400.
For a spend of £500 or over, today’s online rate is currently set at €1.0768.
Finally, for those spending £1,000 or more, a rate of €1.0823 is provided by the Post Office.
Travellers are advised to plan ahead and purchase their money before reaching their airport.
This will allow them to avoid potentially high fees if purchasing their currency at the last minute.
A strong rate when buying foreign currency is the most favourable outcome for those who are travelling.
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