Travel

Pound to euro exchange rate: Sterling faces ‘difficult’ week ahead


The pound is trading at 1.1326 against the euro, according to the latest data from Bloomberg. Sterling had a tricky week last week, ending with a decline against the eurozone currency on Friday night. And there is little on the horizon to suggest an improvement for the pound. Currency analyst Michael Brown, from Caxton, explained the data to Express.co.uk.

He said: “Sterling continued to decline against the euro on Friday, closing 0.2 percent lower and chalking up a fourth consecutive weekly loss as ongoing political uncertainties continue to exert pressure.

“While the week ahead sees a couple of key UK PMI releases, which will provide markets with a gauge of economic performance, it appears difficult for sterling to find any immediate support.

“Markets remain focused on political uncertainties which, combined with a global decrease in risk appetite, continues to dent the pound’s attraction.”

So it seems, with no improvement on the horizon, holidaymakers have a tough choice to make on whether to exchange currency now or wait it out if they can.

Last week, currency experts were adamant only a political shift – either in Brexit negotiations or the Conservative party leadership contest – could prevent any further slump to the exchange rate.

Speaking on Friday, Michael said: “Sterling remained pressured against the euro on Thursday, hovering just above four-month lows as ongoing political uncertainties kept market participants on the sidelines.

“However, the pound remains vulnerable, with medium-term risks appearing balanced to the downside due to the likely installation of a hard-Brexiteer Prime Minister at the culmination of the Conservative Party leadership contest.

“Today sees little in the way of major releases from either side of the pairing, ensuring that markets will continue to focus squarely on ongoing political uncertainties.”

Throughout last week, the pound had been “capped” by developments in Westminster.

Currency experts have not pulled any punches, continually warning travellers there will be no change unless there is a political development.

The Conservative party’s leadership contest came after Prime Minister Theresa May announced her resignation in May.

Whoever is elected – with Boris Johnson, Dominic Raab and Michael Gove some of the contenders – will by default be the UK Prime Minister.

Meanwhile, Britons were hit with yet more currency woe on Thursday following the release of new €100 and €200 euro notes.

Currency experts have warned while the release of the two bank notes – which complete the Europa monetary set – offer more scope for carrying increased holiday spending money, travellers with the highest notes may well encounter issues.

Speaking of the dangers of the new euro notes for Britons, 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.”



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