The pound has slumped to a five-month low against the euro in a poor beginning to the month of June. GBP fell for the third day in a row yesterday and could slide again today, experts have said. This comes following the release of “disappointing economic data” and “continued political uncertainties” regarding Brexit. New data is also due today – construction PMI figures from the UK and CPI inflation data from the eurozone.
The pound is currently trading at €1.126 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 began June by chalking up a third consecutive daily decline against the euro, falling to a fresh five-month low, with an already weak pound further pressured by disappointing economic data,” said Brown.
“May’s manufacturing PMI survey, a useful leading indicator of economic performance, slid to a 34-month low – falling into contractionary territory for the first time since July 2016.
“The disappointing data release, combined with continued political uncertainties to drive sterling lower over the course of the day.
“Turning to the day ahead, markets are likely to focus primarily on construction PMI figures from the UK and CPI inflation data from the eurozone.
“The former is expected to dip slightly to 50.0, signifying stagnation in the sector.
“Meanwhile, across the channel, inflation is expected to decline as the impacts of Easter seasonality fade, with CPI expected to fall to a 13-month low.
“Overall, the balance of risks for the pound remains balanced to the downside, with political concerns likely to outweigh economic data releases.”
Britons were hit with currency woe on Thursday last week following the release of new €100 and €200 euro notes.
Currency experts cautioned that while the release of the two bank notes – which complete the Europa monetary set – offers more scope for carrying increased holiday spending money, travellers with the highest notes may well encounter issues.
Peter Rudin-Burgess from CompareHolidayMoney.com said: “If consumers find a €200 note in their wallet this summer, it is best for them to spend whilst in Europe to avoid being charged a premium for exchanging them back to pounds in the UK.”
Rudin-Burgess added: “We recommend to always check in advance to confirm whether larger notes will be accepted.”
For Britons looking to save money on flights, Lisa Tyndall, Senior Growth Manager at flight comparison site Skyscanner, revealed there’s a simple way to save hundreds of pounds if you’re willing to be flexible.
“Travellers should consider flying out of a different airport nearby to save money,” she told Express.co.uk.
“For example, a family of four travelling to Faro in late May could save nearly £250 by switching to a different departure airport.”
