Pound to euro exchange rate LIVE: Sterling CLIMBS after May triggers Brexit

Prime Minister Theresa May signed the letter triggering article 50 overnight, which was delivered to Donald Tusk, president of the European Council, at 12.20pm today.

This starts the official Brexit process taking the UK out of the European Union.

In the run up to the letter’s delivery, the pound fell against the euro overnight from £1 to €1.151 to £1 to €1.145.

However, sterling rallied again this morning, rising back up to £1 to €1.151 as the time drew closer to 12.20pm – when the UK’s permanent representative in Brussels, Sir Tim Barrow, hand-delivered the letter to Donald Tusk.

Oliver Meredew of TorFX said: “Broadly speaking, if negotiations with the EU appear to be going well then the pound is likely to appreciate. However, if EU officials attempt to make an example of the UK for leaving the multinational union then the pound could come under significant pressure.

“Trade will be a crucial factor in negotiations; the Prime Minister has admitted that the UK won’t be remaining a full member of the EU single market, but the thorny issue of a post-Brexit UK-EU trade deal remains to be dealt with.”

LIVE UPDATES

Update at 2.35pm: Experts have commented on the pound's reaction to article 50 being triggered today, saying that it has so far held its ground despite fears that it would take dive as events unfolded.

Ian Strafford-Taylor, CEO of FairFX, said: “So far, the reaction of the pound to the triggering of Article 50 has been muted – confounding the risk of a fall which was anticipated by some. This signals good news to consumers, particularly holidaymakers planning their Easter break in the next fortnight.

"The market responds negatively to any political and economic uncertainty and, as Brexit is currently still a leap into the unknown, this is what has driven down the strength of the pound. The triggering of Article 50 officially heralds the UK’s break-up from the EU. Until we know the outcome, we’re likely to see continued volatility in currency rates."

Update at 2pm: Currency expert Alastair Archbold, foreign exchange manager for Foremost Currency Group, said fears of a sterling slump following article 50 being triggered have failed to materialise.

He said: "Instead the pound rose by a cent against the euro. Much of the weakness in sterling over the last nine months has been down to uncertainty, and perhaps when negotiations begin and this fog of uncertainty begins to lift, the pound may recover further and eventually reach levels seen before the referendum, particularly if UK economic data continues to impress.

"There awaits a prolonged period of negotiations ahead however, and sterling is likely to remain volatile and susceptible to downward pressure in the short term."

Update at 1.45pm: As reactions to article 50 officially being triggered roll in from around the globe, the exchange rate dips back to £1 to €1.154.

Update at 1.03pm: As Donald Tusk makes his speech following the official triggering of Brexit, the pound jumps to £1 to €1.159.

Update at 12.54pm: Shortly after the PM's speech in the House of Commons, the rate increased again to €1.156 – 0.47 per cent higher than the exchange rate at the close of trade yesterday.

Update at 12.46pm: As Theresa May makes stirring Brexit speech, the pound rises against the euro to £1 to €1.155.

Update at 12.30pm: Just after article 50 has officially been triggered, the rate climbs again to €1.154.

Update at 12.16pm: As Theresa May holds firm while quizzed on PMQs, the exchange rate shoots back up to £1 to €1.153. 

Update at 9.40am: The rate levels out at €1.151 again. 

Update at 8.50am: The pound increases by 0.23 per cent, hitting highs of €1.153. 

The contents of the letter and Donald Tusk’s reaction to it could see the pound remain volatile over the coming days. Mr Tusk made a statement at 1pm, before the European Parliament’s negotiator Guy Verhofstadt speaks at 4.15pm, followed by European Commission President Jean-Claude Juncker at 4.30pm. 

Mr Tusk has said he will present the EU's response within 48 hours of article 50 being triggered.

This will set out draft guidelines for how the EU bloc intends to approach Brexit negotiations, and will no doubt have an impact on the exchange rate.

However, those looking to buy euros for their holiday shouldn’t be too disheartened as sterling could move quickly in either direction.

For example, yesterday morning the pound rocketed to £1 to €1.16 in the run up to article 50 being triggered.

Martin Lewis advised holidaymakers about when to buy currency.

He said: “The question I am being asked all of the time; should I buy my euros or dollars now before Article 50 is triggered?

“Well, we know when Article 50 will be triggered: Wednesday, March 29. If we know, the markets know and the currency traders know. If they know something they have already factored that into the price. So, the date Article 50 is triggered is actually, relatively, meaningless for currency moves.

“Yes, it might move on the day – probably because of other reasons, but if it does move we won’t know if it will go up or down.”

The CEO and co-founder of RationalFX, Paresh Davdra explained: “Sterling is expected to witness fluctuations ahead of Wednesday’s triggering of Article 50.

“Whilst there may not be a slump as dramatic as witnessed in the immediate aftermath of the Brexit vote, the continuing uncertainty around negotiations could see further volatility in the strength of the pound for the foreseeable future.

“Another crucial notion is whether or not the pound will be able to recover once Article 50 is triggered, as some analysts predict that parity with the dollar or even the euro is within sight."

Sterling jumped almost one per cent to 1.259 against the American currency on Monday morning; however, sterling has now dropped against the dollar and is currently 0.17 per cent down, valued at £1 to $1.242.