Pound to euro exchange rate – slight fall for sterling amid Brexit uncertainty
A single unit of sterling was trading at €1.1255 at the time of writing on December 21
THE pound suffered a slight fall against the euro in the run-up to Christmas this week.
A single unit of sterling was trading at €1.1255 at the time of writing on December 21.
The pound is down a significant 5.42 per cent since this time last year, with future uncertainty on the cards.
Earlier this month 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.
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.