Brexit uncertainty has sparked worry among holidaymakers prior to the UK’s departure from the EU, but the after-effects on the exchange rate could see the pound crash in one particular circumstance.
Finance experts have spoken out on the very real potential of a no deal Brexit for the UK, and noted the pound could “break” as a result.
Prime Minister Theresa May is today in Brussels to try to thrash out her Brexit divorce deal in hope the EU will re-open negotiations on her Withdrawal Agreement.
Yet, should she not be successful and the UK leaves the EU with no concrete plans on how to go forward own a post-EU environment, a no deal scenario will ensue.
Ian Strafford-Taylor, CEO of currency expert, FairFX, has contemplated just what will happen to the pound in the event of no deal.
He said: “Nothing is certain, but if the UK crashes out of the EU with no deal, the pound could fall across the board.
“In terms of what that looks for exchange rates, we could see the pound break well below 1.10 against the euro, and head towards the low 1.20s against the US dollar.”
He added: “There is still a lack of clarity over how Brexit will play out.
“With multiple options still on the table the UK still faces a lot of uncertainty over exactly how it will leave the EU.
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