Pound to euro exchange rate: GBP 'unfazed' by looming no-deal Brexit threat

THE POUND to euro exchange rate has seen no major changes in the last few days despite the threat of the UK leaving the EU without a Brexit deal. Will travel money be impacted?

Despite a lack of Brexit deal being secured and the deadline just weeks away, the pound to euro exchange rate remains 'unfazed' according to experts. With the US closed for Labor day, little major change is expected for sterling in the next 24 hours.

However, as the week progresses, trade talks between the UK and the EU will remain in focus for traders.

While experts predict a lack of a deal could mean a huge blow for the pound, Prime Minister Boris Johnson's attitude suggests he considers any risk carried by a no-deal Brexit as "low".

The pound is currently trading at a rate of 1.1174 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX spoke exclusively to Express.co.uk to share his insight into the current rates.

"Sterling traded largely unchanged against the euro on Friday amid quiet trading conditions, and has been almost completely unfazed overnight by reports of a 15 October deadline for a post-Brexit trade agreement," he said.

"This either shows that the market believes the PM is bluffing when it comes to the deadline, or that it continues to see the risks of a no-deal departure as low.

“In any case, trade talks are set to be the main driver of sterling this week, though expectations for any significant volatility today are low given that US desks will be closed for Labor Day.”

For holidaymakers jetting off in the coming weeks, keeping an eye on any relevant political developments and their subsequent impact on the exchange rate will be key.