Here is our guide to what is happening in the euro currency market — and how to get the best price for your sterling.
What is today's pound to euro exchange rate?
At 10am today 1.12247 pounds was worth one euro compared to 1.1206 pounds at the previous close.
Today's range is between 1.1202 and 1.1263.
A series of setbacks suffered by UK Prime Minister Theresa May in parliament ahead of a key vote on her Brexit deal today had pushed sterling to a one-week low against the euro.
However, on the day of the vote it is up by 0.36 per cent.
How is Brexit affecting the exchange rate?
If May loses the vote on Tuesday, January 15 on her Brexit deal and a national election is held that ushers in a Labour Party government and its high-spending policies that would likely weigh on sterling.
The chances that Britain will leave the European Union on March 29 without a deal on their future relationship will leave the markets in a deadlock.
MUFG strategist Lee Hardman said: "It's a done deal that the vote will be defeated. Initial market focus will be on the scale of the defeat and the expectation is it will be heavy — 100-200 votes.
"The surprise will be if the defeat is narrower. The balance of risks (for sterling) is to the upside as people expect a big margin… But it will still leave us in a state of deadlock."
Bank of England governor Mark Carney in the past warned of an "uncomfortably high" risk of a disorderly Brexit and said banks must prepare for a recession.
The international trade secretary also said there was a 60-40 chance of "no deal" because of stubbornness in Brussels.
A weaker pound is better for British exports – but imports will cost more, potentially driving up inflation.
It also means your money doesn't stretch as far when going on holiday abroad.
The exchange rate had remained relatively stable for months following a more volatile period earlier in 2018.
Before the EU referendum in June 2016 a pound was trading for around €1.30. Sterling fell around 15 per cent after the result.
The highest rate in recent years was €1.42 in November 2015.
How can I get the best currency rates?
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
Where is the best place to get euros?
Euros can be bought at supermarkets, such as Marks & Spencer, as well as the Post Office and currency specialists – but rates vary massively.
The best rates can often be found at specialist online outlets, such as Travelex, which will deliver cash directly to your home.
Travellers can use comparison sites, like MoneySavingExpert's TravelMoneyMax, to find the best rate.
If you order in advance and pick up the cash then you’ll most likely get a better rate than if you walk into a bureau de change.
Alternatively, providers such as FairFX and WeSwap offer currency cards that can load up at a good rate and then use abroad like a debit card without transaction fees on each purchase.
You can always buy last-minute currency at the airport or withdraw cash at your destination, but it's almost always cheaper to buy before you go.
Source: Read Full Article