The ongoing Brexit uncertainty “lit a fire” sending the value of sterling soaring last week, according to experts. The failure of Prime Minister Theresa May and her government to find a divorce deal from the European Union has sparked unexpected consequences for the pound. Earlier this month, the pound reached a two month high against the euro. The pound is currently trading at €1.155 according to Bloomberg, at the time of writing.
According to Laura Parsons, currency analyst at TorFX, there could be more benefits to come amid the ongoing Brexit negotiations.
She told Express.co.uk: “Brexit speculation lit a fire under the pound last week and sent the GBP/EUR exchange rate three cents higher to trade in the region of €1.156.
“Sterling also gained against the other majors ahead of Tuesday’s vote on PM Theresa May’s Brexit deal.
“While that will be the week’s main UK news, we’ve also got speeches from Bank of England (BoE) officials and UK confidence data on the horizon.
Her comments will no doubt prove a boost to those hoping the boom is not just a flash in the pan.
Last week, shortly after MPs voted on Theresa May’s proposed Brexit deal, sterling reached a two month high.
“Modest gains” were then seen on Wednesday, with the pound trading at €1.141.
Meanwhile, the political discussions have prompted experts to issue advice for holidaymakers purchasing euros.
The comparative high at the moment should encourage Britons heading to the European Union (EU) on holiday to buy travel money before the exchange rate is shaken up, experts have said.
“Currency must play a pivotal role in holiday planning, and savvy holidaymakers should be keeping a very close eye on currency and its reaction to the latest political events,” Ian Strafford-Taylor, CEO of currency expert FairFX said.
Yet with regard to the security of holiday’s in a Brexit era, travellers can take heart.
The Government has stated nothing will change during the Brexit transition period which runs to December 2020.
In the no-deal scenario, the European Commission has advised that UK airlines will still continue to operate flights between the UK and EU.
If flights have been booked through companies protected by ABTA, they are fully protected under Package Travel Regulations.
This means passengers will be entitled to a full refund if their holiday can no longer go ahead.