The pound has hit levels not seen since early 2017 after the news that a disorderly Brexit is now far less likely.

Sterling was trading at €1.172 against the euro yesterday – a high last reached early in 2017 – while it rose to $1.33 against the dollar.

For the past two years, the pound has risen and fallen based on what traders think will happen with Brexit.

Any rumour that makes Brexit softer or less likely to happen have seen the pound rise, while hints of a harder or "no deal" Brexit have seen it fall.

And the latest news has seen a rise.

"Sterling reached a six-month high against the US dollar, on a move to 1.33 as various political developments in the Labour party, and possibility of an Article 50 extension from Theresa May ," said Jordan Hiscott, chief trader at Ayondo Markets.

And if a second referendum is agreed, it could shoot higher again.

Charles Hepworth, Investment Director at GAM, said: "We think a second referendum would see a much higher move up [for the pound] as Remain odds (apparently) still have the march on Leave.”

Getting the best deal on currency

Whatever is happening with Brexit, it makes sense to get the best deal you can on your foreign currency.

Moneysupermarket recommends shopping around to get the best rates and looking at the total cost, not commissions, fees and rates. That is to say – if I want €250, how much will it cost me once everything is included?

For example, a “commission free” deal can work out a lot more expensive than one with a 2% fee if the exchange rate they’re using isn’t as good.

“The best deals are usually found online for collection from city locations and for home delivery,” Moneysupermarket added.

However, the best deals might actually be to use a card overseas.

The past few years has been an explosion in the number of mobile offerings that let you spend for less overseas.

They generally are free to take out, let you buy when abroad at the best possible rates and even take out £200 fee free from foreign cash mashines.

The most popular are Revolut , Monzo and Starling , but we have a full guide below. We’ve also got a page on where to buy travel money to help you.

Protecting against future falls

There are three ways to take get hold of travel money now in to protect against any future falls.

Prepaid cards – Firstly, pre-paid currency cards . These let you load money on now in your preferred currency and then use overseas to get cash out or pay for things in shops with no fees.

They let you lock in today’s exchange rate for use later at no cost. Some of the new travel cards, such as Revolut, also let you do this.

Another tactic is to load up a special card with foreign currency and use this to pay instead of a debit or credit card. Weswap is a good example of this.

Pay up-front now – Secondly, book now from a local provider. Booking a villa, a hotel or trips on your chosen holiday now and paying in euros (although check the rates aren’t bumped up for people paying from overseas, and there are no currency charges first) could be worth considering.

The risk here is that there could be a problem between now and then and you might not be able to get your money back later.

Cash in advance – Thirdly, change your money now. Check to see who’s cheapest then swap pounds for euros right away, then keep them safe until your holiday.

One rule above all others here – don’t buy your currency at the airport . Order online from the likes of Travelex and pick up at the airport if it’s hard to get cash in advance or head to a specialist service. These are frequently cheaper than the big high-street brands like the Post Office or M&S.

There are also an increasing number of free cash machines in major cities that let you take money out in euros or pounds. These frequently offer rates almost as good as the best providers you can find, but in a super-convenient way and with no charges or commission.

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