Pound to euro exchange rate: ‘Quashed’ Brexit deal rumours send GBP tumbling

Pound to euro exchange rate: ‘Quashed’ Brexit deal rumours send GBP tumbling

The pound to euro exchange rate has seen a dramatic procession of highs and lows in recent weeks as the end of the Brexit transition period draws ever closer. UK and EU officials continue to emotion Brussels this week to try and come up with a deal before the end of October.

“GBP/EUR clinched a 3-month peak before tumbling to a 6-month low during September. It also suffered its third quarterly decline in a row,” explained George Vessey, UK currency strategist at Western Union Business Solutions.

“The last time this currency pair suffered four quarterly declines on the bounce was back in 2003, so what does Q4 have in store?

“A plethora of risks loom this month and quarter – rising COVID-19 infections rates, a potential tsunami of job losses, UK-EU trade talks conclude and the US election race gathers speed.

“Investors anticipate amplified volatility across the board, but especially in GBP currency pairings.”

Though the options to travel to Europe without the need for a 14-day quarantine period are rapidly dwindling, many Britons may still have plans to jet off abroad.

However, the ever-changing exchange rate could be a cause for concern.

While watching the news and staying up-to-date on relevant political developments can help predict any major changes, it is near-impossible to know exactly how traders will react.

“Currency must play a pivotal role in holiday planning, and savvy holidaymakers should be keeping a very close eye on currency and its reaction to the latest political events,” Ian Strafford-Taylor, CEO of currency expert FairFX said.

Planning in advance is also crucial, with money expert Martin Lewis warning to avoid one crucial thing when buying foreign currency.

According to Martin Lewis’s Money Saving Expert website: “Whatever you choose, never buy your currency at the airport.

“Rates are hideous, as you’re then a captive audience.

“If you’ve left it late, at least order ahead for pickup at the airport, as rates are much better than simply walking up to a bureau.”

Published at Fri, 02 Oct 2020 06:58:10 +0000