The pound to euro exchange rate remains rangebound after a week of fluctuations fuelled by changing “risk appetite” of traders. Despite new cases of the virus emerging, with more Britons jetting off on holiday as the government gives international travel to many European destinations the green light, many holidaymakers are looking to exchange travel money.
The pound is currently trading at a rate of 1.0957 against the euro at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX, shared insight into the current rates.
“Sterling traded within a tight range against the common currency on Friday, and is starting today in a rather rangebound manner as well, with the pound struggling to make significant headway against a broader stronger euro, that the market has taken rather an affection to after the EU recovery fund agreement of last week,” he said.
“Looking ahead, the pound should continue taking its lead from shifts in risk appetite, while it would not be a surprise to see the common currency pull back – at least a touch – after the impressive run of gains of late.”
“Fears regarding Brexit are growing amid the pessimistic tones surfacing from London and Brussels.”
He added: “If a no-trade deal Brexit does play out and a UK-US trade deal isn’t in place either, then sterling is expected to fall quickly back to levels witnessed in the height of the coronavirus crisis in March.”
The pandemic has seen the UK economy suffering dramatically as borders closed and Britons were asked to remain home, resulting in rising figures of unemployment.
Though travel to some destinations has resumed, the virus still holds the world in its grip, and smaller outbreaks across the world are leading to some destinations being blacklisted from the UK’s travel list.
Most recently, British holidaymakers were told they could no longer travel quarantine-free between the UK and Spain due to rising numbers of confirmed cases across the nation.
With frequent and rapid changes to the exchange rate, securing the most bang for your buck will mean shopping around for the best rates on offer.
Following the relaxation of lockdown, most travel money operators have reopened their doors for business.
The Post Office is currently offering a rate of 1.0600 for amounts of £400 or more, and a rate of 1.0809 for amounts of £1,000 or more.
“Currency must play a pivotal role in holiday planning, and savvy holidaymakers should be keeping a very close eye on currency and its reaction to the latest political events,” Ian Strafford-Taylor, CEO of currency expert FairFX said.
When it comes to finding the best rates, there is one move Britons should never do warns Mr Strafford-Taylor.
“Whatever you choose, never buy your currency at the airport,” he said.
“Rates are hideous, as you’re then a captive audience.
“If you’ve left it late, at least order ahead for pickup at the airport, as rates are much better than simply walking up to a bureau.”
Published at Mon, 27 Jul 2020 07:07:00 +0000