Pound to euro exchange rate – sterling slips after MPs raise fears over post-Brexit food security
A single unit of sterling was trading at €1.1240 on January 4
THE pound has taken a slight dip against the euro after MPs raised fears over food security after Brexit.
A single unit of sterling was trading at €1.1240 at the time of writing, hours before a report, set to be published later today, warns farmers should not be treated as "bargaining chips" during trade negotiations.
Environment Secretary Michael Gove is now set to tell farmers he current level of subsidies they receive from the EU will remain in place for five years after Brexit.
This news comes after analysts claimed the pound will rise against the euro this year as markets suspect a soft Brexit.
Sterling's value has not soared past €1.3 or below €1.1 since December 22, leading analysts to believe a decline in Boxing Day footfall on the High Street blocked a post Christmas climb.
Towards the end of last year, 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.
LATEST IN MONEY
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.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees