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The pound to euro exchange rate has plummeted to a five-month low just as Britons prepare to jet off for half term holidays. Despite gains made yesterday following optimism that a second Brexit referendum could be on its way, GBP soon slumped. The pound continues to react to Prime Minister Theresa May’s Brexit speech today as well as to UK April inflation figure. The European Elections in the UK tomorrow could also have ramifications for the pound.

The pound is currently trading at €1,138 against the euro, according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

“Sterling closed modestly lower against the euro on Tuesday, with the pound having retraced its early gains on an eventful trading day,” Brown said.

“At one point, sterling gained as much as 0,75 per cent, ahead of PM May’s speech, after reports broke that a second referendum would be offered as part of the deal.“

However, despite the rumours holding true, it was a case of ‘buy the rumour, sell the fact’ for markets – with investors largely unimpressed by the Prime Minister’s offer in addition to concerns persisting that the refreshed deal would not be able to gain a majority in Parliament. — express.co.uk