Pound to euro exchange rate – sterling still up against the European single currency amid strong economic performance since Brexit
THE pound recovered following Tuesday’s slight dip as sterling continues to enjoy a strong run against the Euro, trading at 1.1394 at 8am at market open on Wednesday.
The European Central Bank is expected to announce an end to its quantitative easing programme later this week, although some analysts predict this could come as late as March.
The pound has performed well in recent days, reaching its highest levels since the Brexit vote in June 2016.
Hopes that Britain will soon agree a transition deal with Brussels supporting sterling have also contributed to the currency’s strong performance.
“I expect the political noise to move the pound on a short-term basis.
“But will it change the overall direction of the last 12 months? I don’t think so,” said Michael Hewson, chief analyst at CMC Markets, who remains bullish on the pound.
Hewson said the only event that could send sterling sharply lower was if talks with the EU broke down completely, which he said did not look likely as Brussels looked more amenable to negotiating with Britain.
The president of the EU Commission, Jean-Claude Juncker, said on Thursday Britain was welcome to rejoin the trading bloc after it has left next year.
Towards the end of last year, sterling enjoyed a slight surge as the first phase of the Brexit talks were concluded.
With the value of currency so closely linked to the outcome of the UK’s departure talks, all eyes will remain firmly fixed on the remaining Brussels negotiations – with the toughest part, the trade talks, still to come.
Latest Money News
Both the UK and the EU’s remaining 27 member states will face “substantial losses” without a deal on Brexit, according to a recent report.
Europe would be clobbered by 1.2million job losses if no agreement were reached, while Britain would take a 4.5 per cent hit to GDP, according to the Centre for Economic Policy Research.
What has happened to the euro conversion rate in the last few months?
Sterling is down around 13 per cent against the euro and 11 per cent against the dollar compared with before the EU Referendum of June 2016.
For investors, a rate hike is good news, as it means the pound gains more value while it’s sat in buyers’ bank accounts.
A rise in interest rates can also reflect an increase in general economic confidence, which will increase sterling’s relative value on financial markets.
Where is the best place to get euros?
Euros can be bought at supermarkets, 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 your cash directly to your home.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- 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
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THE pound recovered following Tuesday’s slight dip as sterling continues to enjoy a strong run against the Euro, trading at 1.1394 at 8am at market open on Wednesday.
The European Central Bank is expected to announce an end to its quantitative easing programme later this week, although some analysts predict this could come as late as March.
The pound has performed well in recent days, reaching its highest levels since the Brexit vote in June 2016.
Hopes that Britain will soon agree a transition deal with Brussels supporting sterling have also contributed to the currency’s strong performance.
“I expect the political noise to move the pound on a short-term basis.
“But will it change the overall direction of the last 12 months? I don’t think so,” said Michael Hewson, chief analyst at CMC Markets, who remains bullish on the pound.
Hewson said the only event that could send sterling sharply lower was if talks with the EU broke down completely, which he said did not look likely as Brussels looked more amenable to negotiating with Britain.
The president of the EU Commission, Jean-Claude Juncker, said on Thursday Britain was welcome to rejoin the trading bloc after it has left next year.
Towards the end of last year, sterling enjoyed a slight surge as the first phase of the Brexit talks were concluded.
With the value of currency so closely linked to the outcome of the UK’s departure talks, all eyes will remain firmly fixed on the remaining Brussels negotiations – with the toughest part, the trade talks, still to come.
Latest Money News
Both the UK and the EU’s remaining 27 member states will face “substantial losses” without a deal on Brexit, according to a recent report.
Europe would be clobbered by 1.2million job losses if no agreement were reached, while Britain would take a 4.5 per cent hit to GDP, according to the Centre for Economic Policy Research.
What has happened to the euro conversion rate in the last few months?
Sterling is down around 13 per cent against the euro and 11 per cent against the dollar compared with before the EU Referendum of June 2016.
For investors, a rate hike is good news, as it means the pound gains more value while it’s sat in buyers’ bank accounts.
A rise in interest rates can also reflect an increase in general economic confidence, which will increase sterling’s relative value on financial markets.
Where is the best place to get euros?
Euros can be bought at supermarkets, 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 your cash directly to your home.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- 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
We pay for your stories! Do you have a story for The Sun Online news team? Email us at tips@the-sun.co.uk or call 0207 782 4368 . We pay for videos too. Click here to upload yours.
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