THE pound to euro exchange rate has stormed to give Brit holidaymakers the most bang for their buck in 22 months.
The pound sterling has soared to its highest figure in nearly two years after Prime Minister Theresa May struck a Brexit breakthrough.
The PM jetted to Strasbourg last night for last-minute talks with the EU in which she says she secured “legally binding” changes.
She claims the changes now means the Irish backstop – the insurance policy designed to avoid a hard border in Ireland – could not “become permanent”.
The news has sent the pound to euro exchange rate rocketing to 1.719, according to Bloomberg this morning – the highest figure since May 2017.
It comes just hours before MPs are due to take part in tonight’s crucial vote on May’s Brexit deal – just days before the UK is due to leave the EU on March 29.
But the vote is “likely” to impact the exchange rate, currency experts have warned, and it’s not known whether the hit will be positive or negative.
Ian Strafford-Taylor, CEO of currency expert FairFX, told Daily Star Online: “The pound lifted this morning as a positive reaction to the PMs deal talks last night and at the moment the pound stands at 1.173 against the euro, the highest it’s been since May 2017. That said, it’s still down 10% compared to the day of the referendum back in June 2016.
“Today marks a momentous day in the Brexit journey to say the least. The outcome of tonight’s vote could have a significant impact on what happens to the pound both in the short and long term future.
“If MPs vote for Theresa May’s Brexit deal, we edge closer to understanding exactly how and when Brexit will play out but whether that is positive or negative for the pound depends on the deal itself.”
The second vote on May’s Brexit deal, up until last night, was widely believed to be likely rejected.
If it is turned down by MPs tonight, despite the “legal changes”, then another vote will take place tomorrow on whether to opt for a “no deal” Brexit.
And if that is turned down MPs will have a third vote in three days on whether to extend Article 50 and delay Brexit.
Currency expert Stafford-Taylor added: “However, if parliament vote against May’s deal there will be a fresh vote to consider tomorrow which could further influence to the pound’s movement.
“It’s likely the pound will react in light of the aftermath of tonight’s vote – but in which way depends on the outcome of the vote.
“Whenever there is any update to Brexit negotiations or parliamentary votes, we see a spike in support requests as customers try to understand what it all means for the pound and our Brexit Support Desk will be anticipating lots of queries today and tomorrow once the results are known.”
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