Pound SOARS against the euro and dollar after MPs vote to rule out No Deal Brexit
THE pound has climbed against both the euro and dollar after MPs voted against a no deal Brexit last night.
At the time of writing at 9.30 this morning, £1 was worth $1.33 - up from $1.31 at the same time yesterday.
It's the joint highest rate sterling has hit against the dollar since June 2018.
The pound has also climbed against the euro, standing at €1.17 at the time of writing.
That's up from €1.16 24 hours ago and is also the highest the pound has been against the euro since May 2017.
It comes as a vote on exiting the EU without a deal was last night blocked by MPs with 321 votes compared to 278.
Prime Minister Theresa May will now confirm whether she will now seek an extension to the Article 50 process taking us out of the EU.
She warned last night that a short delay of up to three months will only be possible if it comes after her Brexit deal is approved, giving time to put it into practice.
Michael Brown, senior analyst at currency firm Caxton FX says the decision by MPs has boosted the pound as it provides a level of certainty.
Should I buy my holiday money now?
GIVEN the pound has risen against both the dollar and the euro, holidaymakers may wonder whether now's a good time to exchange their cash.
But it's next to impossible to time the markets - one expert told us they expect stability for the pound going forward while another said they expect volatility.
The cheapeast way to spend abroad is to use a specialist overseas credit card, and if you must take out cash, at least get the best exchange rate by using a comparison tool, such as TravelMoneyMax.
You could also consider visiting a country where the pound is currently strong. Ian Strafford-Taylor, chief executive of currency firm, FairFX said: “There are other currencies where the pound is performing stronger against than the euro and these are worth considering for those who haven’t booked a holiday yet but want to see their money go further.
"The pound is up 162 per cent against the Argentine peso for example, compare to the referendum – meaning holidaymakers would get an extra £618 for every £1,000 exchanged.
"It’s also up 76 per cent against the Egyptian pound, 72 per cent against the Turkish Lira and 10 per cent against the Sri Lankan Rupee.”
He said: "Sterling gained more than 1.5 per cent against the dollar yesterday, as market participants were reassured that a no deal outcome would be avoided.
"While the motion passed in Parliament is non-binding, it seems that MPs will do all in their power to avoid leaving at the end of March with no deal in place.
"Such an outcome has provided the market with a modicum of certainty."
Mr Brown adds that today's vote on extending the article 50 negotiation period would provide further stability for sterling.
He said: "This evening’s vote on extending the article 50 negotiating period is expected to pass, so sterling would likely be underpinned if an extension to the period is confirmed.
"There are also reports that a third meaningful vote will be held next week, in a last ditch effort for the Prime Minister to pass her deal.
"As before, the passing of a deal, or confirmation of an extension, would provide sterling with further support.
Despite the pound's recovery is still hasn't returned to pre-referendum levels.
Immediately before the referendum result to leave the EU on June 23 2016, £1 would get you $1.47 and €1.30 euros.
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
Ian Strafford-Taylor, chief executive of currency firm, FairFX warns that fluctuations are set to continue. He said: “Parliament’s decision to vote against a no-deal Brexit means we’re still no closer to knowing exactly when and how Brexit will play out.
"All this uncertainty leaves the pound vulnerable to more fluctuations. At this point it’s hard to say whether the pound will continue to rise or face a fall.”
More on money
Here's what time the next Brexit vote is and what happens next.
The Government yesterday revealed what no deal Brexit trade tariffs mean and how the cost of imported Volkswagen cars, steak and cheese could rise – but wine will get cheaper.
Meanwhile, Chancellor Philip Hammond announced his Spring Statement 2019 – here's what it means for you.
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