Travel

Pound to euro exchange rate: Election polls boost GBP as Tory win looks likely


The pound to euro exchange rate gained some ground yesterday after a fairly stagnant week. As in recent weeks, opinion polls suggesting a Tory victory have allowed the pound to regain some of its strength against the European currency. It’s a positive outcome for the GBP, which saw a minor slump yesterday following a bleak outlook from experts regarding the manufacturing industry.

Whether the current position is maintained will largely depend on political campaigns moving forward.

The pound is currently trading at a rate of 1.1729 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, Senior Currency Analyst at Caxton FX said: “Sterling gained ground against the euro on Tuesday, erasing Monday’s losses, as a couple of opinion polls showed the Tories maintaining their lead, settling some nerves among investors.

“Today, while the latest services PMI figures will be an opportunity for a health check on the UK economy, FX volatility will likely be driven by political developments – including any fresh polls or policy announcements.”

READ MORE: General election polls: Who will win election 2019? [DATA]

However, polling expert Sir Jon Curtice warned that Labour could still regain some strength in the coming days.

He said: “We do have to bear in mind that probably Boris Johnson needs a bit more than a six point lead before we say yeah he’s clearly all home and dry.”

He added: “Then there is a high probability that we will get a minority Labour administration charged with the task of applying for an extension and going for a second referendum.”

How this will affect the pound is yet to be seen, though in recent weeks unpredictability has resulted in dramatic fluctuations for the currency.

So what does this mean for travellers getting ready to head to Europe?

The likelihood is that any dramatic political developments will have an effect on the pound – either positively or negatively.

In a best case scenario holidaymakers will get a pleasant surprise and benefit from positive rates, though as in recent weeks, this could also mean losing out on a substantial sum.

The best thing to do is stay as up to date as possible on political happenings, and consider any upcoming events which could result in negative backlash.

The Post Office are currently offering €1.1272 for £400 and €1.1494 for upwards of £1,000.

Ian Strafford-Taylor, CEO of international money specialist, Equals (previously known as FairFX) shared his top tips.

He said: “If you’re heading abroad for a winter break or even if you have a trip planned in the new year you should consider buying your travel money while the pound is doing well or you could risk getting a lot less for your money by waiting.

“The run-up to a general election has always been a volatile time for the pound, and this election is proving to be no different. But with the outcome of the election set to have a huge impact on how Brexit plays out, there’s even more at stake for the pound which means it’s more vulnerable than ever.”

Meanwhile Rob Stross, CMO of WeSwap emphasises the importance of planning ahead.

He said: “In light of this uncertainty, it is always best to exchange money as early as possible.

“Last minute travel money purchases, in locations such as at airport bureaux, are always likely to lead to less bang for your buck as merchants are able to offer whatever exchange rate they like, knowing holidaymakers have no choice but to accept.



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