Michael Gove discusses changes to EU travel after Brexit
The pound is “rather subdued” against the euro, experts have said. “Major uncertainties” around Brexit were solved before the start of 2021, giving sterling a much-needed boost amid a time of volatility. The “limited reaction” after the UK’s final withdrawal from the EU is thanks to markets having “priced the deal to perfection” ahead of the event.
Mercifully, this means “the degree of political risk” will diminish which should help the pound in 2021.
The pound is currently trading at 1.1168 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling comes into 2021 with the major uncertainties over post-Brexit UK-EU trade having now been resolved, though the pound remains rather subdued against the common currency,” he said.
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“Markets appear to have priced the deal to perfection in advance of its signing, hence the limited post-agreement reaction that we have seen.
“Nevertheless, with that uncertainty resolved, the degree of political risk priced into the pound will continue to dwindle which, coupled with an expected softer dollar and pro-risk tone, should help sterling to perform well throughout the year ahead.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.0626 over £400, €1.0654 for over £500, or €1.0682 for over £1,000.
Hamish Muress, currency expert at international payments company OFX, has shared his travel advice and top tips for Britons trying to keep track of currency at this confusing time.
“You need to stay on top of exchange rates to understand how far your money will go overseas,” Muress told Express.co.uk.
“Exchange rates are always changing… whether it’s the ongoing global coronavirus crisis or the UK’s future outside Europe… there is a seemingly endless stream of things that could affect the value of the pound abroad.”
“It’s important to know where you stand, but you don’t have to watch the markets yourself.”
Some currency specialists, including OFX, let customers sign up for daily market commentary and exchange rate updates.
What’s more, it may be worth speaking to a currency expert to understand how the pound is performing and get a sense of what might happen next.
Britons are also urged to be aware of any post-Brexit travel changes.
The government has explained: “Travel to the EU, Switzerland, Norway, Iceland or Liechtenstein will change from January 1, 2021.”
Things you may need to do before you go include:
– checking your passport (it will need to have at least six months left of validity)
– getting travel insurance that covers your healthcare
– checking you have the right driving documents
– organise pet travel (contact your vet at least one month before you go)
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