THE POUND to euro exchange rate has rocketed in the last 24 hours as markets grow optimistic about the covid vaccine rollout in the UK. What does this all mean for your travel money - should you exchange leftover currency?
| UPDATED: 10:33, Wed, Dec 23, 2020
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The pound to euro exchange rate sunk on Tuesday after the EU refused to accept the latest UK offer on access to its fishing waters, in the latest Brexit news. Concurrently GBP was negatively impacted amid the travel chaos as multiple countries across the globe moved to ban UK flights due to a new strain of covid identified in the UK. The pound is currently trading at 1.1021 against the euro, according to Bloomberg at the time of writing.
George Vessey UK Currency Strategist for Western Union Business Solutions, commented: “The new COVID-19 variant, discovered in Britain continues to rattle markets, yet early Monday s panic mode seems to have calmed for now. The UK and France are likely to reopen freight movement between them after the Paris decision to close the border caused major disruptions. The UK reportedly makes concessions on fisheries, hopes for a Brexit breakthrough keep the pound afloat.”
“The UK has reportedly made a considerable concession on fisheries, dropping its demand for an EU reduction of catches in UK waters from 60 percent to 35 percent, still apart from the bloc s demand of 25 percent. The differences are minuscule in economic terms but politically sensitive. European fishery lobbyists feared that Chief EU Negotiator Michel Barnier is ceding too much ground.”
What s more, multiple countries have now banned flights from the UK amid fears concerning a new strain of the virus identified, adding to travel chaos.
Boris Johnson will hold an emergency meeting later today after countries made the decision to shut their borders to Britain following the emergence of a super-infectious strain of COVID-19.
The pound is currently trading at 1.10942 against the euro, according to Bloomberg at the time of writing.
George Vessey UK Currency Strategist for Western Union Business Solutions, commented: “This morning market sentiment has soured and safe haven assets rise as a new strain of coronavirus discovered in the UK has triggered flight bans and heightened concerns. Several countries cancelled flights to Britain and the port of Dover has halted traffic to France, which could lead to serious supply-chain issues ahead of Christmas. Prime Minister Boris Johnson convenes the Cobra cabinet today. GBP/USD is down by more than 1 percent, punished also by
Boris Johnson has pushed ahead with last minute trade negotiations (Image: Getty Images)
However, the exchange rate will likely see a dramatic change following the December 31 deadline.
Last week, Prime Minister Boris Johnson warned Britons to get ready for an Australian style deal, suggesting a no deal could be on its way.
“There’s now the strong possibility we will have a solution that’s much more like an Australian relationship with the EU than a Canadian relationship with the EU,” he said in a pooled TV interview on Thursday.
Britons who have leftover holiday money from cancelled travel, or who are hoping to jet off in the early months of the new year, may want to consider exchanging their currency now.