Pound to euro exchange rate: Sterling ‘vulnerable’ to fall - should Britons swap currency?

The pound to euro exchange rate enjoyed a mini surge this week, in good news for travellers, yet experts have forecast GBP remains “vulnerable”. Currency analysts insist sterling remains at

the mercy of UK political developments, with voting for the new Conservative Party leadership and consequent UK Prime Minister starting today. This will run until around July 22 - so

politics has plenty of time to impact exchange rates though the summer, meaning holidaymakers should stay vigilant. The pound is currently trading at 1.123 against the euro, according to

Bloomberg, at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk about the precarious situation.

He said: “Sterling closed broadly unchanged against the euro on Wednesday, with a lack of major economic releases from either side of the pairing resulting in an absence of volatility.

“Despite a brief surge after Conservative leadership favourite Boris Johnson indicated that a no-deal Brexit would not be his preferred outcome, the pound’s gains were short-lived as

sterling retraced after a motion to rule out a no-deal Brexit was defeated in Parliament.

“Today, the economic calendar remains sparsely populated meaning markets are likely to continue being driven by ongoing political uncertainties in the UK.

“Despite firming recently, the pound remains vulnerable to downside moves should a no-deal exit from the EU become a more likely outcome.”

Yesterday, Express.co.uk reported how sterling had enjoyed small gains against the euro.

This could indicate Britons looking to travel to Eurozone countries should convert their sterling now, to benefit from the best rates.

Michael added: “Despite the pound remaining relatively well-supported at present, any significant upside movement is unlikely until a degree of political uncertainty has dissipated.”

Meanwhile, Express.co.uk has also reported how Britons could be forced to show their holiday currency at border control after the UK separates from the EU.

These FCO guidelines include one particularly unexpected stipulation, which many will have not realise.

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It relates to the documents needed at border control - and, surprisingly enough is nothing to do with passports.

Instead, as well as a passport, Britons will need to show a return or onward ticket.

Yet the curveball which will now feature in a post-Brexit travel climate is that travellers now need to “show you have enough money for your stay”.

The FCO website stipulates: “Border control: you may have to show your return ticket and money.

“There will be other changes from 31 October 2019 if there’s no deal.”

It added: “At border control, you may need to show a return or onward ticket, show you have enough money for your stay and use separate lanes from EU, EEA and Swiss citizens when queueing.”

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