The pound to euro exchange rate hit month-to-date highs yesterday as Prime Minister Boris Johnson headed to Europe. GBP’s improvement saw sterling rally as it gained more than one per cent on Thursday. French President Macron and German Chancellor Merkel “struck a conciliatory tone” yesterday, said experts. This helped foster Brexit optimism due to the hope that a backstop solution could be found in time for the UK’s departure from the EU.
Looking ahead at today, as the trading week comes to a close, there is unlikely to be any further shifts, experts have said.
The pound is currently trading at 1.105 against the euro this morning, 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 rallied against the euro on Thursday, gaining more than one per cent to hit month-to-date highs after PM Johnson’s tour of European capitals ended on a better than expected note,” said Brown.
“The pound was buoyed by the conciliatory tone struck by both Macron and Merkel.
“The latter boosted the pound after stating that a backstop solution could be found by 31st October.
“Turning to today, with nothing in the way of major data releases from either side of the Channel, the pairing will likely respect its recent trading ranges.”
So what does this all mean for Britons heading abroad to the Eurozone this Bank Holiday weekend?
The Post Office is offering an exchange rate of €1.0699 for over £400 and €1.0749 for over £1,000.
However, ongoing confusion and concern regarding Brexit have seen some British holidaymakers avoid travelling to the continent for fear of the exchange rate.
New research from foreign exchange provider, International Currency Exchange (ICE), shows that Brexit is forcing us to reconsider our holiday spending, as four in 10 Brits aged 50 and over (40 per cent) said their biggest limitation to taking more holidays was cost.
Amid money worries, those Brits who are travelling abroad are opting for familiarity with a third of baby-boomers returning to the same destination every year and picking trips that are ‘comfortable and familiar’ (30 per cent).
Louis Bridger, Head of UK at ICE, said: “Every time there has been added Brexit turbulence, it hasn’t been good news for consumers and their travel money.
“A weaker Pound would, of course, mean more expensive holidays for Britons but our message to travellers is ‘don’t panic’. While being more financially aware of the economy and its impact on your finances is a good thing, you can still enjoy the things you love and get away on holiday abroad so long as you’re savvy with your spending.”
According to Bridger, the best way to guard against any negative fallout from Brexit is by planning ahead. Given the volatility of the market, it’s a good idea to prepare for a drop in GBP by ordering your money sooner rather than later.
As a general rule, you’ll get a much better rate when you order your travel money online, rather than waiting until you get to the airport.
Furthermore, if you’re worried about exchange rates going up and down amid Brexit uncertainty, you can load your money onto a prepaid travel money card and lock in your rate.
Bridger’s third top tip is to choose a holiday destination with a good exchange rate, which might mean looking outside the Eurozone. Destinations where Brits can enjoy excellent value include Turkey, South Africa, Poland, Romania and Morocco.
