The pound to euro exchange rate increased yesterday after positive Brexit news emerged. On Tuesday, the Supreme Court ruled the prorogation of Parliament unlawful. The result of this decision means a no-deal Brexit is less likely, experts have said, as Prime Minister Boris Johnson can now be more effectively challenged and MPs can regain control of the Brexit process. The exchange rate has benefited as UK markets become more confident that a no-deal can be avoided.
Looking ahead at today, the attention will remain on political matters as Parliament reconvenes.
The pound is currently trading at 1.1335 against the euro, according to Bloomberg at the time of writing.
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 Tuesday after the Supreme Court ruled the prorogation of Parliament to be unlawful; handing MPs back an element of control over the Brexit process,” said Brown.
“The ruling also rules out the possibility of a further prorogation to force through a no-deal Brexit, thus reducing the likelihood of such an outcome.
The day ahead sees a quiet economic calendar, hence focus will remain on political events, with Parliament set to reconvene shortly before lunchtime.”
Yesterday, House of Commons Speaker John Bercow called for the immediate regrouping.
Bercow said: “I don’t think the justices remotely excluded the possibility of having a Queen’s speech but what we will certainly do is ensure Parliament has plenty of time to debate Brexit.”
If the Conservative Government is challenged on its hard-Brexit stance during the reopening of Parliament the pound to euro exchange rate could likely hold onto its gains.
What does the current rate mean for UK holidaymakers hoping to buy travel money?
The Post Office is currently offering an exchange rate of €1.10066 for over £400 and €1.1117 for over £1000.
If travellers with an impending holiday in the diary are unsure whether now is the best time to buy euros, there is a savvy solution.
Currency expert Brown advised: “Holidaymakers can hedge their bets and protect themselves from the on-going currency volatility against the Pound by exchanging half their currency now, half later.
“That way, whether the rate goes up or down, they can benefit from a higher exchange rate on at least half the amount.”
Alana Parsons, also from Caxton, added: “Build up a travel money fund and lock in an exchange rate for your next trip on a currency card, keep a watchful eye on the rates so you can take advantage of any gains, and most importantly don’t leave it all to the last minute and avoid airport kiosks!”
A recent study found that almost half of British holidaymakers are now travelling ‘gourmets’ who go abroad – just for the food.
The study of 1,000 UK holidaymakers, by Travelzoo, identified Italy as the number one destination when it comes to travelling abroad for the food.
Half of those polled will routinely search which restaurants to visit or which dishes to try, before choosing where to visit next and 52 per cent said they prefer to eat at local independent restaurants to get the most authentic experience possible.