The pound is staying stable against the euro – yet at the mercy of “unexpected Brexit headlines” today. Sterling was dubbed to be on a “Brexit barometer” yesterday as discussions about the UK’s exit from the EU, scheduled for October 31, are ongoing. Yet despite towing the political line the pound has “trod water” and remains relatively unchanged today. The pound is currently trading at 1.093, against the euro, according to Bloomberg.
Michael Brown, senior market analyst at Caxton FX, spoke to Express.co.uk about a status quo in the exchange rate markets today.
He said: “Sterling trod water against the common currency on Monday, as a lack of major data releases and lingering concerns over rising geopolitical tensions resulted in muted volatility.
“The pound ignored PM Johnson’s letter to EU leaders setting out his negotiating position, including removing the Irish backstop, which told us little we haven’t heard before.
“The day ahead is once again set to be quiet, with no major data releases scheduled.
“As always, sterling traders will be on alert for any unexpected Brexit headlines, in anticipation of the PM’s tour of European capitals in the latter part of the week.”
Meanwhile, Louis Bridger, head of currency at ICE has talked of the impact of political developments on the pound.
He previously told Express.co.uk: “It’s fair to say that Brexit uncertainty is continuing to impact both economy and currency rates.
“Until the situation becomes clearer it’s likely that the pounds performance will continue to be negatively affected.
“It’s likely that the pound will face further ups and downs as people try to anticipate what will happen next, I’d advise Brits to continue to brace for uncertainty.”
He added: “With airport strikes, holiday firms collapsing and now sterling falling even lower, it is understandably stressful thinking about how to minimise currency losses and get the most for your pound.
“Our message to those heading overseas is to not panic, there are a number of ways you can get the most of your travel money.
“Be savvy and minimise any additional hits to your holiday money by planning ahead. Look at alternate services which let you lock in favourable rates, such as click and collect, or ordering your cash through home delivery.”
Meanwhile, experts from Mybgagage.com have urged holidaymakers to look outside of Europe to max out their currency – and beat the barometer.
They said: “If you’re planning a last-minute break and not tied to the idea of a typical holiday spots, then trying a more adventurous destination could allow you to exploit the pound’s strength.
“Brits heading to Turkey, Bulgaria, Tunisia, Argentina, Iceland and Malaysia will all get significantly more local currency in exchange for their pounds sterling, compared to this time last year.
“The cost of living is often lower beyond Brits’ favourite western European destinations too, which can further improve the value for money you get.”