Brexit and the pound to euro exchange rate 2019

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Brexit and the pound to euro exchange rate 2019

The saga that is Brexit has continued throughout 2019 and we now know it will move on into 2020.  The political turmoil is bound to have an effect on currency and none more than the euro, which is far and away the most popular currency brought in the UK.

What does this mean for you when you come to buy your holiday money and is there a better time to buy? Despite all the chaos in the House of Commons over the last few months the euro is actually up 5% overall since January 1st. However it has had it’s peaks and troughs and most noticeably in August at the height of the holiday season!

January to May

Pound to euro exchange rate improves

The year started with euro at around 1.1050 and over the next few months Prime Minister Teresa May had no less than 3 attempts at passing her withdrawal bill through Parliament blocked. Interestingly this doesn’t seem to have affected the pound to euro exchange rate very much. It saw a steady climb between February and May stayed between 1.140 and 1.160. In real money this means a difference of around +/- 20 euros for £1000 so fairly stable.

May to September

Pound to euro exchange rates in decline

On May 24th Teresa May announces she is to step down and the hunt for a new leader and Prime Minister is underway. The euro goes into a steady decline just in time for the main holiday season. It continues to fall after Boris Johnson is elected as the new Conservative leader on July 23rd and reaches a 2 year low on August 11th of 1.065 which means you would have got nearly €100 euros less for £1000 than in May!

September to November

Pound to euro rate improves (again)!

Then it all turns around. It’s hard to say whether this was a ‘Boris effect’ or not but since August the euro exchange rate has seen a steady climb and even after the announcement of a general election the pound to euro rate has remained steady at around 1.14 to 1.15.

The Future

Oh if only we knew! It would be surprising if the result of the general election did not have an effect and of course this would very much depend on the outcome and how the financial institutions of the world view the result. If you are going away for Christmas and the new year then you could hedge your bets and buy some now and some at the time, otherwise it’s a matter of hoping for the best. Of course whenever you are set to travel,  you will always find the best live exchange rates at any time for over 60 currencies on Compare Holiday Money.

Posted by Graham Morley

Graham Morley

Graham is the Business Development Manager for Compare Holiday Money.

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