The exchange rate has sunk to €1.080 after briefly climbing to €1.1083 yesterday.

Sterling has suffered after damming comments made by the European Union’s chief Brexit negotiator Michel Barnier. 

UK Brexit Secretary David Davis was welcomed to Brussels yesterday for the third round of monthly face-to-face talks.  

But Mr Barnier stoked up tensions by suggesting Britain was not taking the Brexit process seriously.

He sounded dismissive towards policy papers the UK has published this month setting out details and options on issues surrounding Britain’s actual departure from the EU and future relations with the bloc.

Pound euro exchange rate: Sterling has been hit by comments from the EU over Brexit

The GBP/EUR exchange rate dropped as the third round of Brexit talks got off to a less-than-positive start

Laura Parsons

The EU Commission envoy claimed Britain’s position on key divorce issues remained unclear and he was concerned about slow progress.

Brexit talks have already been fraught with frustration on both sides and the exchange rate has faltered as a consequence. 

TorFX currency analyst Laura Parsons said: “As the UK public basked in the novelty of a sunny bank holiday, the GBP/EUR exchange rate dropped to €1.07 as the third round of Brexit talks got off to a less-than-positive start. 

“The EU’s chief Brexit negotiator Michel Barnier was slammed for comments which were viewed as an ‘ill-judged and unhelpful’ attack on the UK, leaving relations with Brussels on uneasier ground than ever.”

Pound euro exchange rateXE

Pound euro exchange rate: Sterling is buying €1.080

Fresh data out of the EU today could send the pound spiralling further. 

Ms Parsons said: “Today’s German consumer confidence and French growth reports could keep GBP/EUR under pressure if they meet sanguine forecasts.”

The flailing exchange rate has hit holidaymakers jetting off during peak summer months. 

Many travellers embarking on overseas August bank holiday trips had less spending money if they failed to buy foreign cash in advance. 

Pound euro exchange rate

Pound euro exchange rate: Sterling remains volatile to Brexit negotiations

FairFX reported that the pound has fallen three per cent against the euro since the start of the summer holidays a month ago, meaning tourists are getting €32 fewer for every £1,000 they exchange.

Tourists who wait until they are about to board their flight face even worse deals, with some airports offering walk-up rates of just €0.95 – less than €1 per pound.

FairFX chief executive Ian Strafford-Taylor said: “Holidaymakers looking to make the most of their spending money have had a tricky summer.

“At a time when going on holiday is at its most expensive because of the school holidays, families have had the added financial squeeze of a volatile pound to contend with.”

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