The pound to euro exchange rate fell on Monday after soaring high last week. Hopes of an alternative to the Irish backstop being agreed in the near future were dashed following comments from EU leaders and Boris Johnson. Meanwhile, the euro was left dampened as the flash German composite PMI sunk to its lowest level since October 2012. As for today, the attention will be on the Supreme Court’s ruling over the legality of the prorogation of Parliament.
The pound is currently trading at 1.1316 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 Monday, with last week’s Brexit optimism continuing to turn to pessimism,” said Brown.
“Comments from various EU leaders, as well as PM Johnson himself, dampened hopes of an alternative to the Irish backstop being agreed in the near future.
“Turning to today, the focus will be on the Supreme Court’s ruling over the legality of the prorogation of Parliament.
“It is difficult to be sure of the impact that this will have on the pound, however a defeat for the government would likely result in a brief rally, with MPs retaining some control over the Brexit process.”
Foreign Secretary Dominic Raab has said that the government will “abide by the ruling” while Conservative MP Rory Stewart gave a contradictory statement, saying it was “unlikely” the Prime Minister would respect the court’s ruling.
Raab failed to rule out the possibility of the Prime Minister proroguing parliament again if the Supreme Court decision went against the government.
So what does this mean for your holiday money? The Post Office is currently offering an exchange rate of €1.1053 for over £400 and €1.1105 for over £1000.
For holidaymakers who are apprehensive about when to withdraw holiday money, Rob Stross, CMO of peer-to-peer travel money provider WeSwap advises: “In order for holidaymakers to ensure they get the best exchange rates, they should be aware of any important dates in the political calendar.
“Try to plan when you buy holiday money accordingly.” A very good idea when it comes to buying travel money is to not to buy it all in one go.
“WeSwap’s research has found that nearly half of all Brits find and buy their foreign currency on a single day, leaving them vulnerable to forces beyond their control that dictate the strength of the Pound,” said Stross.
“When shopping across travel money providers, holidaymakers should be aware of any up and coming big political dates and stagger travel money purchases accordingly, such as buying half of their currency beforehand and half afterwards as a simple way to mitigate risk.”
The Post Office’s Long Haul Holiday Report, released this weekend, revealed that while local price has fallen in half of 30 destinations surveyed will cushion the impact of sterling’s slide, UK visitors can expect to pay more than last year in three-quarters of resorts and cities.
The Long Haul Holiday Report barometer of costs for 10 typical tourist items, including meals and drinks, found that Japan (Tokyo), South Africa (Cape Town) and Bali (Kuta) remain the lowest-priced destinations.
However, prices have risen in all three and Tokyo has regained the top spot from Cape Town.
