The pound to euro exchange rate experienced muted volatility yesterday, in part due to the long weekend in the USA. The States celebrated national holiday President’s Day on Monday. This resulted in “significantly thinner liquidity and quiet trading conditions” for GBP.
Concerns over post-Brexit trade relations between the UK and the EU were also called into question yesterday following comments from the French Foreign Minister, Jean-Yves Drian.
Drian said that the two sides could “rip each other apart” during trade negotiations, but insisted that this would be a necessary “part of the negotiations” for “everyone will defend their own interests”.
As a result, Sterling remained subdued against many of its peers on Monday, with fears of a no-deal Brexit after the termination of the transition period later this year being likely to weaken the British economy.
Looking ahead at today, the focus is due to move onto economic data.
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UK employment data will be released on Tuesday and will attract the attention of investors.
The pound is currently trading at 1.1998 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling remained rangebound against the euro on Monday,” said Brown.
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“[It held] above the €1.20 handle, as the President’s Day holiday in the US resulted in significantly thinner liquidity and quiet trading conditions.
“Today, attention shifts to economic data, with investors set to pay close attention to this morning’s UK employment data.
“[This] is set to show the labour market remaining tight, as well as the latest ZEW sentiment surveys, with close attention set to be paid to any pessimism stemming from the coronavirus outbreak.”
So what does this mean for Britons heading off on holidays and looking to buy holiday money?
The Post Office is currently offering a rate of €1.1591 for over £400 and €1.1820 for over £1,000.
For holidaymakers seeking to save some money, picking a destination where money could go further is key.
For instance, while Spain is a hugely popular hotspot for Britons – some locations are much more expensive than others.
The new Summer Holiday Prices Report for 2020 by Spain-Holiday showed Ibiza is the most expensive destination in Spain for a summer holiday in 2020.
A family of four can expect to pay a whopping £3,418 for accommodation only for a one week stay in Ibiza this summer.
Meanwhile, holidaymakers can make huge savings by choosing to stay on the Costa de Almeria, in Andalusia on the south coast of Spain.
Accommodation prices on the Costa de Almeria for one week and four guests start as low as £401.
For those wanting to travel to the Canary Islands this summer, Lanzarote and Tenerife offer great value for money across the board, especially holiday rental prices and eating out, highlighted the report.
