The pound has maintained the high levels it struck on Friday through the weekend and into today.
The high rate is the best it’s been since July and there could be more growth to come, said experts.
The pound is currently trading at €1.139 against the euro, according to Bloomberg.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Hopes that a Brexit deal is in sight propelled the pound higher on Friday, with the currency rallying against the majors before the weekend,” Parsons said.
“GBP/EUR stormed to €1.139, it’s best levels since July. As long as Brexit optimism remains, the pound’s recent uptrend could continue.”
The pound began its ascent on Thursday when it breached €1.130, up by 0.3 per cent on the day’s opening levels.
Parsons said: “The pound also jumped by more than 0.5 per cent against the US, Australian, and New Zealand dollars.”
Theresa May’s speech at the Conservative Conference and the latest Brexit news most likely influenced the rate’s movement.
The Irish government are thought to be supporting May for an all-UK customs union.
This would mean the involvement of the United Kingdom as a whole and avoid customs checks between Britain and Northern Ireland.
Therefore Northern Ireland and the UK would follow the same customs rules.
Irish Prime Minister Leo Varadkar backed an imminent conclusion to Brexit negotiations.
He said: “I’m very keen to see an agreement concluded by November, if at all possible.”
The issue of the Irish border still has yet to be solved, however, as pointed out by EU Chief Negotiator Michel Barnier.
Barnier said: “To agree to any deal, we need to have a legally sound backstop solution for Ireland and Northern Ireland.”
Looking ahead to this week, high-impact German economic data will be out today and Tuesday.
Mid-week UK GDP stats are tipped to show growth from 0.3 per cent to 0.4 per cent, which may cause a pound to euro exchange rate rise on Wednesday.
Holidaymakers looking to escape the cold should think of heading to Turkey – the pound is strong against the Turkish lira meaning holidays to Turkey can be grabbed for a bargain.
The best times to book Christmas holiday flights have also recently been revealed.
