Pound to euro exchange rate SOARS to highest level in seven months as Brexit deal nears

BREXIT DEAL: The pound to euro exchange rate rose as a draft Brexit deal was made (Pic: GETTY)

The pound has been going through a turbulent time since the Brexit vote in June 2016.

But today the pound to euro exchange rate has reached its highest level in seven months following some promising Brexit progress.

Earlier today the exchange rate hit €1.15 to the pound, although it has dropped slightly now to €1.14778.

The boost came as Theresa May met with ministers ahead of a showdown with her Cabinet to discuss a draft Brexit deal agreed by UK and EU negotiators.

Sterlings boost will come as good news for anyone wanting to visit Europe over the festive period.

EXCHANGE RATE: The current exchange rate is €1.14778 to the pound (Pic: GETTY)

However, the pound is still down 12% against both the euro and US dollar compared to the day of the Brexit Referendum where the rate was €1.30.

Compared to this time last year, the pound is up 3% against the euro but down 1% on the US dollar.

Ian Strafford Taylor, CEO of travel currency expert, FairFX said: “The ongoing Brexit negotiations over the last two years has made for a turbulent time for the Pound, and its not out of the water yet despite a draft Brexit agreement between the UK and EU.”

“The draft agreement is the closest weve come to having a divorce plan for leaving the EU so far and the outcome of todays cabinet meeting could give us a much clearer signpost for what leaving the EU will look like."

SOARING: Earlier today the exchange rate hit €1.15 to the pound (Pic: XE.COM )

He continued: “However, the PM still has to secure backing from and the cabinet, and ambassadors from the other EU countries.

“This could lead to a possible emergency summit, and with reservations from senior Brexit and Remain supporters, its likely the Pound will react again.”

“Political uncertainty has a huge impact on currency and exchange rates.

“Although the Pound has shown improvements against the Euro, its still down considerably compared to pre-Brexit rates.

“The highest rate weve seen since it was announced the UK would leave the EU is still 9% lower than before the referendum.”

When should I buy my euros?

If youre planning a holiday to Europe this winter you might be wondering if the exchange rate is going to improve or ultimately get worse.

Writing on his website Moneysavingexpert.com, Martin Lewis discusses whether Brits should buy their holiday money now or wait.

“The problem is there is no law of exchange rate gravity, just because a currency has dropped, it does not have to bounce back,” said Martin.

“Markets move based on expectations, so if interest rates go up, but not as much as was thought, that could make the exchange rate drop.”

“Yet many other factors affect the pounds strength – general economics, speculation, political stability and more,” he added.

Its difficult for anyone to predict how the exchange rate will be affected in the coming months.

However, if youre unsure when to buy your euros the money guru suggests buying half now and half later.

“Buy roughly half what you need at todays best rate – whether in cash or on a prepaid card (see how to get todays best rate), and then for the rest just rely on the best rate on the day you spend,” he said.

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