The pound to euro exchange rate has plunged after losing around 0.4 per cent on Tuesday. Brexit uncertainty in the UK and signs that the UK economy is slowing has contributed to the pound’s drop. GBP’s slump comes as the holiday season gets underway meaning British travellers will be getting fewer euros for their pounds. Experts have cautioned that it’s unlikely sterling will show improvement today.
The pound is currently trading at €1.111 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 lost ground against the euro on Tuesday, falling to a fresh six-month low after shedding around 0.4 per cent,” said Brown.
“The pound’s fall came as political uncertainties and increased concerns over the UK’s economic health exerted downward pressure.
“Economic performance will be in focus today, with the release of May’s GDP figures.
“The economy is expected to have grown at 0.3 per cent on a month-on-month basis, though this wouldn’t make up for contractions seen in March and April or allay investors’ concerns over recent lacklustre survey data for June.
“As such, a weak GDP print would likely exert further downward pressure.”
So what does this mean for British holidaymakers heading abroad this week?
The Post Office is currently offering a rate of €1.0888 for over £400 and €1.0938 for over £1000.
It’s key to be savvy when it comes to dealing with holiday money. There are a number of ways you can save.
Tips include: Pre-ordering cash on the internet, shopping around for the best exchange rate, avoiding buying travel money at the airport and using specialist cards with low fees to take money abroad.
It’s also worth working out the fees on cash machine withdrawals overseas.
Despite the political uncertainty and economic upheaval in the UK at the moment, Britons are staying loyal to European holidays, it has been claimed.
New research from GlobalData, a leading data and analytics company, claims UK visitor numbers to Europe are set to reach 64.4 million in 2023.
The company maintains travellers will seek out sunshine, city breaks, and cheap food and drink in Europe, despite not getting as much value for their sterling against the euro as prior to the 2016 Brexit referendum.
The results of the survey show UK departures to Europe are set to grow at an annual growth rate of 2.88 per cent from 55.9 million in 2018 to 64.4 million in 2023.
Published at Wed, 10 Jul 2019 06:51:00 +0000