The pound bounced back to its highest level against the euro since late-June last week following the DUP’s announcement that it would modify planned policies for the Irish backstop. Meanwhile scheduled talks between British Prime Minister Boris Johnson and the EU Commission President Juncker brought an additional boost for the pound, propelling it into its fifth week of gains against the euro. The GBP is currently trading at 1.1267 against the euro, according to Bloomberg at the time of writing.
With a week of political turbulence ahead, pound sterling is expected to face some volatility based on the outcome of more negotiations.
Alongside planned UK-EU Brexit bargaining, all eyes will be on the Supreme Court on Tuesday, as they establish the legality of Johnson’s decision to prorogue Parliament.
The pound faces further instability on Thursday when the Bank of Europe will release its final rate decision.
While negotiations surrounding the Irish backstop have been welcomed as a positive step, Juncker diminished some hope of a solid outcome commenting: “We do not know what the British want in detail, precisely, and we are still waiting for alternative proposals.
“And I hope we get them, but time is running out.”
Further uncertainty lies ahead with the Supreme Court ruling, which will determine whether the PM’s advice to the Queen regarding prorogation of parliament was lawful.
The decision will have a fundamental impact on both Johnson’s fate, and the relationship between the UK and Scotland.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling gained ground against the common currency on Friday, rallying to its best levels since June, as Brexit sentiment seemed to improve.
“Reports that the DUP were preparing to soften their negotiating stance, as well as headlines that there had been ‘serious engagement’ in UK-EU talks, both helped to propel the pound; which has now chalked up 5 straight weeks of gains against the euro, the longest such streak since late-2016.
He continued: “Turning to the week ahead, focus for sterling will remain on political developments. PM Johnson is set to meet EU Commission President Juncker today, with any comments on the progress of negotiations likely to result in sterling volatility.
“Market participants will also pay keen attention to Tuesday’s Supreme Court hearing on the legality of Parliament being prorogued, as well as Thursday’s BoE rate decision”
While Johnson remains firm to his word that the UK will leave the EU as planned on October 31, the affect of the political landscape on the pound remains to be seen.
For Britons heading off on European holidays, the most recent developments will see them enjoying a slightly boosted exchange rate.
The Post Office is currently offering €1.0981 for over £400 or €1.1026 for over £500, fluctuating slightly since the end of last week.
However, travellers can make sure they get more bang for their buck by shopping around and comparing currency rates before changing their travel money.
Though it can be tricky to understand what the exact current exchange rate is, the best time to check is usually a week prior to travel.
That way travellers have time to grab a deal on the day, or wait to see if any upcoming events are set to have a positive affect on the rates.
It is also important to be aware of any no hidden fees or charges that may come with the currency exchange.
Koko Sarkari, CEO of International Currency Exchange additionally encourages travellers to think about any other factors that could result in unexpected cost, such as the reliability of their chosen Bureau de Change and how to change any left over currency back to pounds.