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Pound to euro exchange rate: Sterling surges – will you buy holiday money today?


The pound to euro exchange rate “ground higher” on Tuesday in good news for GBP. The rise came despite poor employment data which revealed that while the UK unemployment rate fell back to 3.8 percent, the lowest level since 1975, the number of people in work slumped by around 58,000. This was the largest drop in employment in four years. Wage growth also disappointed, with average weekly earnings by 3.6 percent rather than the 3.8 percent expected.

The pound is currently trading at 1.1676 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 ground higher against the euro on Tuesday, despite poorer than expected employment data,” said Brown.

“Market participants remained hopeful that December’s election would result in a majority for the Conservatives.

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“Election developments will remain in focus today, along with this morning’s CPI figures.

“These are set to show inflation remaining benign – potentially heightening the chances of a more dovish BoE come December.”

Ian Strafford-Taylor, CEO of international money specialist Equals explained the impact the election will have on GBP.

“The upcoming general election spells further uncertainty for the pound as it remains vulnerable to fluctuations while the UK waits to find out exactly how the election will play out and who will be in charge at number ten,” the expert said.

“The political landscape naturally has a huge influence on the pound and its performance, so we can expect even more movement in the coming weeks as the UK braces itself for a general election.”

“Election developments will remain in focus today, along with this morning’s CPI figures.

“These are set to show inflation remaining benign – potentially heightening the chances of a more dovish BoE come December.”

Ian Strafford-Taylor, CEO of international money specialist Equals explained the impact the election will have on GBP. “The upcoming general election spells further uncertainty for the pound as it remains vulnerable to fluctuations while the UK waits to find out exactly how the election will play out and who will be in charge at number ten,” the expert said.

“The political landscape naturally has a huge influence on the pound and its performance, so we can expect even more movement in the coming weeks as the UK braces itself for a general election.”

As for if Conservatives win the election in December, Strafford-Taylor said: “Boris Johnson has already said that he wants the UK to leave the EU with his revised deal if the Conservatives win a general election.”

“This means that we could see further turbulence for the pound as he would once again have to make a push to get his deal through parliament, a parliament that could look very different following the election.”

So what does this mean for Britons heading off on their holidays and looking to buy travel money?

The Post Office is currently offering a rate of €1.1228 for over £400 and €1.1449 for over £1,000.



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