Things are looking bleak for Brits holidaying in Europe this year, as the pound to euro exchange rate remains low amidst political uncertainty.

A year after the Brexit vote, sterling is down 13.7% against the euro with further volatility on the horizon.

The exchange rate bounced between €1.13090 and €1.14434 to the pound this week as official Brexit negotiations got underway in Brussels.

There was a glimmer of hope yesterday as the exchange rate climbed from €1.13311 to €.14051, following Theresa May’s latest big Brexit announcement.

EXCHANGE RATE: Sterling has been suffering since the EU referendum last year
VOLATILE: The current exchange rate is €1.13624 to the pound

May offered three million EU citizens the right to stay in the UK in exchange for one million Britons to stay living in the Union.

A new "UK settled status" would grant EU migrants who had lived in the UK for five years rights to stay and access health, education and other benefits.

As the future relationship with the EU started to become clearer, sterling shot up by 0.22%. However, since the spike it has fallen back down to €1.13579 to the pound.

So, when should Brits buy their holiday money and is sterling going to recover any time soon?

While the Bank of England's mixed message on the future of interest rates seems to be causing a deadlock, two top banks have revealed slightly differing views on the future of the pound.

Analysts at Lloyds Bank have downgraded their forecast for the pound to euro exchange rate for the rest of 2017 and 2018.

The high-street giant told poundsterlinglive.com the political uncertainty and the stabilisation of the Eurozone are bad news for the pound.

But while Barclays also believe the Brexit process will hit the pound hard, they expect sterling to gain a little more by the end of the year.

Lloyds outlook for the pound to euro exchange rate:

The bank predicts a small positive lift for sterling against the euro in the coming months, but expects the pound to euro exchange rate to be lower than previously predicted.

The pound to euro exchange rate is now forecast to end 2017 at €1.14 to the pound – a little higher than the current €1.13624.

Lloyds said: "Our GBP/EUR projection is lower at 1.14 (from 1.16) at end-2017 and unchanged at 1.14 at end-2018.”

Barclays forecast for the pound to euro exchange rate:

Analysts at Barclays are also worried about the impact the current political uncertainty will have on the pound.

However, they have predicted a more positive outcome by the end of 2017. The bank believes the exchange rate could hit highs of €1.1675 to the pound before the year is out.

When should you buy your currency?

According to the experts the pound to euro exchange rate is unlikely to fall any more, but it probably won’t get that much better before the end of 2017.

However, if Barclays predictions are correct it would be better to wait a little longer to buy currency if you can.

Keep an eye on the exchange rate and political events and make the most of any spikes you see.

Also, avoid buying currency at airports as they often offer the worst rates.