The pound to euro exchange rate fell slightly on Thursday following the Bank of England’s policy statement release. Diminished growth expectations saw GBP drop against the euro despite interest rates staying steady. The ongoing Conservative Party leadership contest which saw Michael Gove ousted yesterday has not appeared to impact the market. Today is unlikely to see the pound shift further while the euro could be affected by PMI surveys, explained experts.
The pound is currently trading at €1.124 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 lost ground against the euro on Thursday, recording its first daily loss in three trading days after the Bank of England struck a cautious tone in their latest policy statement,” said Brown.
“Despite interest rates being kept on hold, a downgrade in growth expectations in the second quarter, to 0 per cent, exerted downward pressure on the pound.
“Meanwhile, the progression of Boris Johnson and Jeremy Hunt to the final round of the Conservative Party leadership contest was largely expected and had little impact on the market.
“Turning to today, with no major releases due from the UK, sterling should hold relatively steady as markets continue to digest the BoE’s policy message and ongoing political uncertainties.
“Meanwhile, the near-term direction of the euro will be determined by this morning’s PMI surveys – expected to show solid expansion in the services sector, but a fifth consecutive contraction in manufacturing.”
So what does this mean for holidaymakers hoping to buy travel money ahead of a trip?
The Post Office is offering a rate of €1.1011 for over £400 and €1.1065 for over £1,000.
Travel money comparison website CompareHolidayMoney.com advises going online for the best rates.
“Online providers have lower overheads and you can save around £40 per £1000 spent if you buy online compared to the high street,” CompareHolidayMoney.com said.
“If you don’t want to wait in for home delivery, you can still take advantage of the online rates by using a ‘click & collect’ service that many providers supply.”
They also advise ignoring promises of zero per cent commission. “Most outlets offer this these days — and take their cut in other ways. The rate is far more important,” they said.
Lastly, consider picking your holiday destination based on where the currency offers good value.
“At the moment, Turkish lira, Croatian Kuna, Bulgarian lev, Romanian leu, Thai baht and Australian dollars are all weak against the pound. That means you pay less to get more holiday money,” said CompareHolidayMoney.com.
Travel Supermarket experts have now compiled the top 20 cheapest summer holiday locations for Britons.
The list, tailored to families, perhaps surprisingly shows Kotos, Corfu in Greece as top.
