‘Change your money now’ if you’re heading abroad after Brexit vote

If you’re heading abroad for some winter sun, it’s probably best to change your money now amidst growing uncertainty ahead of the Brexit vote, experts have warned.

Anyone travelling abroad in the next week or so should act fast if they want to avoid taking a hit when swapping cash.

The pound has fallen 14% against the Euro and 13% against the dollar, compared to the day of the EU referendum in 2016.

Sterling is trading down over 1% versus the US dollar at 1.273 and shed 0.3% against the euro at 1.118 as MPs gear up to deliver their verdict on the Prime Minister’s Withdrawal Agreement.

Experts are warning that further uncertainty and volatility may make matters worse.

Number crunchers at ING have outlined a series of scenarios for the pound following the vote.

In the unlikely event that Mrs May’s deal passes, sterling will rally to 1.38 US dollars, according to the bank.

If a general election were to be called, which is also unlikely, the pound would plummet to 1.20 US dollars and if a Norway-type arrangement is agreed, it would rise to 1.35 US dollars.

A second referendum would see the British currency jump to 1.40 US dollars.

However, all three latter scenarios require an extension of Article 50.

Hannah Maundrell from money.co.uk believes things could go either way, given the uncertainty, Birmingham Live reported.

She said: ‘We’ve seen rates take a tumble since Brexit was announced.

‘But rates could rally as we move from the unknown back to business as usual.

‘Currency markets don’t like uncertainty, therefore exchange rates could fall as we find our feet outside of the EU.’

Neil Wilson, chief market analyst at Markets.com told the paper that traders should expect ‘considerable volatility’.

He said: ‘Extension of Article 50 seems likely if this deal fails and Jeremy Corbyn manages to force an election.

‘But similarly, the no-deal risks rise by the day with March 29 just a couple of months away. As previously argued, the either of the extremes is still the most likely outcome.’

The Prime Minister’s Brexit Withdrawal Agreement is expected be defeated heavily in the commons tonight.

If Parliament rejects the deal with a large majority, City Index’s Fiona Cincotta believes that the pound could tank further.

‘Labour (will) look to call a vote of no confidence in Theresa May, pushing for a general election.

‘Domestic political chaos, the prospect of a Labour government and on-going Brexit uncertainty would be a toxic combination for the pound, sending it back towards 1.20 US dollars and the post-Brexit-referendum lows,’ she said.