The pound to euro exchange rate remained “rangebound” after showing the most growth in a month on Tuesday. GBP has remained at the improved rate despite “sub-forecast inflation data,” said experts. October’s UK inflation figure hit a three-year low at 1.5 percent, it was revealed yesterday.
The pound is currently trading at 1.1666 against the euro, 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 was once again rangebound on Wednesday, despite sub-forecast inflation data, with a lack of political developments the primary factor contributing to the quiet trading ranges,” said Brown.
“Today, politics will remain at the forefront, with any further party alliances in particular focus ahead of this afternoon’s deadline for submitting candidates.”
DON’T MISS
The euro failed yesterday to benefit from the release of the Eurozone’s industrial production figure for September, which beat forecasts and rose by 0.1 percent but failed to improve market optimism in the bloc’s flagging economy.
Meanwhile, the German economy remains a major concern for euro traders, with fears that the Eurozone’s powerhouse could face a technical recession today, when the quarter-on-quarter German GDP figures are due to be released.
If the Eurozone’s largest economy descends into a recession the pound to euro exchange rate could edge higher.
So what does all this mean for Britons heading abroad on their holidays and looking to buy travel money?
The Post Office is currently offering a rate of €1.1249 for over £400 and €1.1471 for over £1,000.
With the general election impending and Brexit on the horizon, it can be tricky to know when to buy holiday money at this time of volatility.
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.
