Pound euro exchange rate continues to ‘push higher’ anticipating trade deal breakthrough

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The pound has managed to gain strength against the euro in recent days despite a significant outcome from crunch Brexit talks. According to experts, the silence is being perceived as “no news is good news”.

What’s more, despite a new round of lockdown rules across Europe in a fight against the spread of COVID-19, the pound continues to hold its position.

The pound is currently trading at a rate of 1.1101 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his outlook for sterling.

“Sterling firmed once again against the euro yesterday, though looks to require fresh impetus to continue its push higher, with the ‘no news is good news’ stance on Brexit talks helping to support the pound, but not allowing it to extend recent gains,” he said.

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“Today, the BoE decision will likely be something of a non-event, with attention remaining on the aforementioned trade talks.”

George Vessey, UK currency strategist at Western Union Business Solutions suggests there could be a deal on the approach.

“Smarkets betting exchange sees an 80 percent chance of a UK-EU trade deal this year, which is being reflected in sterling’s strong rally over the past 24 hours,” he pointed out.

He added: “Despite the rise in COVID-19 infections and tighter restrictions in many areas, global risk appetite is being supported by the rollout of vaccines, optimism about a big US fiscal package and revived hope of a UK-EU trade deal.”

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However, with so much uncertainty ahead, many Britons may not be sure whether they should change their currency now or in the future.

Unfortunately, it isn’t so easy to predict according to money saving expert Martin Lewis.

Speaking on ITV’s This Morning, Martin said: “If you’re trying to play the markets, the markets factor in what they know so that price is already in.

“It’s likely if we have a no-deal Brexit, the markets don’t like that and the pound will get weaker.

“That will be good for you if cashing your euros in so you’d want to wait.

“If we have a deal, the pound will get stronger which will be bad for you.

“I don’t know which one of those is going to happen.”

Despite this advice, however, other experts have a different approach – particularly for those who have leftover foreign currency.

Founder of currency exchange platform Bidwedge Shon Alam urges Britons to try and switch their money now before the Brexit outcome is determined.

Though the pound has seen a significant boost recently, previously it has endured sudden fluctuations at the hands of Brexit.

Should this happen again, Britons should be prepared.

“Typically, travellers tend to hold on to their remaining foreign currency, He continued: “Taking advantage of this situation to exchange the foreign currency that has been lying at the bottom of the drawer for years, means that you could get more pounds in return than you previously would have done.”

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