The pound is currently enjoying a “respite” amid a torrid week for the sterling to euro exchange rate. GBP saw a small rise yesterday, courtesy of stronger than expected inflation rates, which saw it at its highest level this week. It marks positive news for holidaymakers who might be exchanging their currency ahead of a vacation to the Eurozone. The pound is currently trading at 1.081 against the euro, according to Bloomberg, at the time of writing.
A spokesperson for Caxton FX spoke exclusively to Express.co.uk about the reason for the minor upturn.
They said: “Yesterday’s mix of data releases help to propel GBPEUR to the highs of the week at 1.0835.
“The combination of a weak German GDP print along with a stronger than expected Inflation number from the UK provided a welcome respite for Euro buyers against the Pound.
“The rise in the UK’s core inflation number was still below the two per cent target and thus should not warrant any change in rhetoric at the next Monetary Policy Committee meeting.
“Today’s focus will be on UK retail sales which are due out at 9.30am.
“Economists have forecasted a weaker number and the market will cautiously be watching to see if GBPEUR reverses yesterday’s gains.“
It offers small hope for holidaymakers, who last week were hit with the worst exchange rates since 2012.
Yesterday, Express.co.uk reported how the pound was suffering from a “wave” of pressure, at the worst possible time ever for those leaving the country.
Talking of GBP’s poor form, a Caxton FX spokesperson said: “The British economy shrunk for the first time since December 2012, after data released on Friday showed that second-quarter gross domestic product (GDP) in the UK contracted by -0.2 per cent.”
Meanwhile, help could be at hand courtesy of the travel team at Voucher Cloud.
For those Britons who have not yet booked their holiday yet are looking for a break away, they have highlighted how to max out their currency.
The team studied fluctuations of the 25 different European currencies to find the destinations where your GBP will get you more than it did on January 1st 2019.
Their spokesperson stated: “As you might expect, Eastern Europe has performed well here, with beautiful Georgia coming 1st thanks to the GBP’s 2.83 per cent increase in value against the Georgian lari this year.
“The ever popular Turkey comes in 3rd, whilst rank outsider Moldova (next door to Romania, fact fans) comes in 4th, both currencies holding steady against the GBP.
“Surprisingly, upmarket Sweden features too, thanks to the GBP’s strong performance against the krona (worth 2.43 per cent more). Those majestic fjords, urbane cities and remarkable people will be cheaper to visit than ever!”