Pound to euro exchange rate: Sterling rate ‘volatile’ amid Brexit uncertainty after vote

Brexit uncertainty caused the value of the pound to fall on Tuesday compared to the euro – and there could be more “volatility” to come. The political landscape again had tangible impacts on the economy as Conservative rebel backbenchers rallied against the prospect of Theresa May’s no-deal Brexit. On Tuesday, a group of MPs voted to limit the power of the Treasury should the UK separate from the EU with no deal, defeating the Prime Minister. The financial obstacle means the Government’s spending power will be curbed should there be no agreement.

Members of the Tory party turned their backs on their leader to join opposition Labour MPs for the vote.

The pound is currently trading at €1.111 against the euro, according to Bloomberg.

Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.

She said: “The pound fell across the board on Tuesday in response to reports that the UK government has ruled out delaying its departure from the EU, even if its deal is voted down by MPs next week.”

She added the landscape could well change, after a speech scheduled for today, Wednesday.

Laura added: “The GBP/EUR exchange rate dropped back to €1.110. Bank of England (BoE) Governor Mark Carney is due to speak today and could drive pound volatility if he discusses the bank’s policy plans for 2019.”

Therefore the degree of variation could increase further following the meetings.

The UK’s departure from the EU has had the strongest impact overall on sterling over recent months.

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The country is now facing fewer than 100 days to go until the scheduled departure date.

However, Britons do not need to fear Brexit affecting holidays. A Downing Street spokesperson has said it was “categorically untrue” that people had been warned not to book trips beyond March 2019.

Travel agents’ body ABTA has said: “There is nothing to suggest that you will not be able to continue with your holiday plans after 29 March.

“Even in a no-deal scenario, the European Commission and UK Government have said flights to and from the UK will still be able to operate.”

Elsewhere, authorities have warned the euro could face difficulties in 2019 if reform does not take place.

The Centre for Economic and Business Research said in its annual predictions for 2019 “internal contradictions” would force the Eurozone to “integrate economically” or “risk breaking up.”

It remains to be seen whether the gap between the sterling and euro rates will vary further.

Daily Express :: Travel News Feed
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