The Pound’s torrid run against the euro is set to continue, according to finance experts, forecasting a “downside” in fortune today. GBP is set to slide amid ongoing negotiations over the next Conservative party leader, and consequent Prime Minister – a scenario running in tandem, with both the European Parliament elections and Brexit negotiations over the UK’s departure from the EU. The pound is currently trading at 1.134 against the euro, according to Bloomberg, at the time of writing. Michael Brown, currency expert at Caxton FX, told Express.co.uk of the dismal market for sterling at present.
He said: “Sterling remained anchored just above four-month lows against the euro on Tuesday, as ongoing political uncertainty in Westminster prevented the pound from taking advantage of a broadly weaker single currency.
“Today’s calendar is once again sparsely populated, with little in the way of major data releases due from either side of the Channel.
“As a result, markets are likely to continue focusing on an ever-growing field of Conservative Party leadership candidates in addition to EU leaders beginning political bargaining over the distribution of various top jobs – including the ECB Presidency.
“Any sterling appreciation is likely to remain capped by the ongoing uncertainty, with the balance of probabilities pointing to further downside moves.”
On Tuesday, as the finance markets re-opened after the Bank Holiday, the pound was again making negligible gains against the euro.
It however had broken a shock run which had seen it at its lowest levels since 2000.
Meanwhile, the grim forecast came on a day in which the new 100 and 200 euro notes were released.
Following the reveal, currency guru Peter Rudin-Burgess from CompareHolidayMoney.com, issued advice for Britons.
He said: “It is quite rare for holidaymakers to find €200 notes in their wallet, but they may find a €100 note.
“When consumers exchange currency, most online suppliers that we work with will try to offer a good mix of denominations.
“Some online suppliers will even allow you to specify the denominations you want.”
Meanwhile, the Conservative party leadership contest is ongoing, with more names released this weekend.
These include Boris Johnson, Dominic Raab and Jeremy Hunt.
The former is strongly pro-Brexit which, if what experts say is correct, could see a slump for the pound
Additionally, those looking to head overseas any time in 2019 should exchange their cash now, according to CompareHolidayMoney.com, no matter when they are flying.
They cite the poor state of the UK economy, something which has been exacerbated by the uncertainty surrounding Brexit, as the main reason why.
Sparking an urgent warning for all British travellers, they flag how there is a need to be “savvier”.
