STERLING has hit a near ten-year low against the euro opening at €1.0724 this morning ahead of a No Deal Brexit.
Britain is set to leave the European Union (EU) by October 31, 2019, but if it can’t agree trade, customs and immigration rules in time it will exit without a deal.
New Prime Minister, Boris Johnson, has said he is prepared to leave the union without a deal if it’s the only way we can “Brexit” on time.
But the pound has taken a battering since the referendum to leave the EU in June 2016.
Prior to this, it had been as high as €1.44 in July 2015 but has been tumbling ever since.
It last dipped to these sorts of lows during the height of the financial crisis in 2009 where it fell to its lowest point in the past ten years of €1.0625.
Against the dollar meanwhile, £1 is currently worth $1.203, which again is down from highs of $1.715 seen in July 2014.
It’s also the lowest point for the pound against the dollar in the past ten years.
Going back to the pound, Ian Strafford-Taylor, chief executive of travel money firm FairFX, says it’s been on a “rollercoaster journey”.
He said: “As the ongoing uncertainty around Brexit continues to rock the pound we’ve seen it reach a shocking new low against the euro.
“Since the referendum back in June 2016 the pound has been on a rollercoaster journey to say the least, but this is the lowest rate we’ve seen in the last decade.
“With talk of a motion of no confidence and the increasing threat of a no-deal Brexit it’s little wonder that the pound is vulnerable and we’ve seen a drop in confidence in the market.
Is now a good time to buy or sell currency?
IF you’re heading off on holiday or have just arrived home and are wondering whether now’s a good time to buy or sell currency. Here’s what you need to know:
Exchange rates are constantly changing and can go up and down because of any number of reasons.
This means it’s almost impossible to even try and time the market, all you can do is make sure you get the best deal when you buy or sell.
Use MoneySavingExpert.com’s Travel Money Maximiser tool to compare rates if you’re taking cash – it’ll tell you where you can buy your cash for less.
To protect yourself against currency price changes, Money Saving Expert Martin Lewis recommends buying a bit now and a bit before you go. He said: “A simple way to guard against currency moves is buy some now, and some just before you go.
“This diminishes the impact of rate moves (good ones as well as bad).”
Also consider a specialist travel credit card, which allows you to spend money abroad without being hit by any fees or hidden charges. For more on travel credit cards you can read our guide here.
And never buy currency at the airport or other ports – it will always cost more.
Use Money Saving Expert’s Travel Money Max tool to compare buy back rates to make sure you’re not ripped off.
“Whether or not the pound will improve depends on how the next two months play out.
“The pound is currently down 17 per cent against the euro compared to the day of the referendum, meaning holidaymakers heading to eurozone countries today would get £205 worth of euros less for every £1,000 exchanged compared to June 2016.
“Compared to the high of the decade which we saw in July 2015, the pound is down a massive 25 per cent.”
Andy Demetriades, director of treasury solutions and partnerships at currency firm Caxton adds that while sterling has increased slightly this morning against the euro and dollar, this rise is unlikely to last.
He said: “After carving out new 2019 lows both against the euro and the US dollar on Friday, this morning sterling is drawing breath and attempting to regain ground against a basket of currencies.
“But I suspect the bounce we are seeing this morning will be moderate and limited in nature before renewed selling pressure appears.
“The UK releases important data points including retail sales and CPI inflation for July on Wednesday morning and if either falls below expectation it could trigger yet another leg lower for the pound.”
Here’s the latest on whether a No Deal Brexit is still a possibility for the UK leaving the EU.
But former Labour leader Gordon Brown has warned that a No Deal Brexit risks breaking up the UK and claims Britain faces “oblivion”.
Despite the uncertainty, a new poll reveals Tories are Sun readers’ favourite party once again thanks to Boris Johnson.
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