The pound is subject to “risks” which could prompt a further slide against the euro in a grim forecast for Friday. Currency experts are adamant only a political shift – either in Brexit negotiations or the Conservative party leadership contest – can prevent any further slump. Yet with this unlikely to transpire today, the dismal rates spell bad news for weekend holidaymakers. The pound is currently trading at 1.132 against the euro, according to Bloomberg, at the time of writing.
Caxton FX expert, Michael Brown, spoke exclusively to Express.co.uk about the current sheer dependence of GBP on British politics.
He said: “Sterling remained pressured against the euro on Thursday, hovering just above four-month lows as ongoing political uncertainties kept market participants on the sidelines.
“However, the pound remains vulnerable, with medium-term risks appearing balanced to the downside due to the likely installation of a hard-Brexiteer Prime Minister at the culmination of the Conservative Party leadership contest.
“Today sees little in the way of major releases from either side of the pairing, ensuring that markets will continue to focus squarely on ongoing political uncertainties.”
Throughout the week, the pound has been “capped” by developments in Westminster.
Currency experts have not pulled any punches, continually warning travellers there will be no change unless there is a political development.
The Conservative party’s leadership contest came after Prime Minister Theresa May announced her resignation earlier this month.
Whoever is elected – with Boris Johnson, Dominic Raab and Michael Gove some of the contenders – will by default be the UK Prime Minister.
Meanwhile, Britons were hit with yet more currency woe on Thursday following the release of new €100 and €200 euro notes.
Currency experts have warned while the release of the two bank notes – which complete the Europa monetary set – offer more scope for carrying increased holiday spending money, travellers with the highest notes may well encounter issues.
It comes as they are already struggling to max out their cash with GBP trading “flat” against the euro in a bleak scenario which traders believe will continue.
Speaking of the dangers of the new euro notes for Britons, Peter Rudin-Burgess from CompareHolidayMoney.com said: “If consumers find a €200 note in their wallet this summer, it is best for them to spend whilst in Europe to avoid being charged a premium for exchanging them back to pounds in the UK.
“Some smaller businesses in Europe will not accept larger notes.
“We contacted a small selection of holiday resorts, hotels and restaurants in Europe and found that 40 per cent of them do not accept notes larger than €100.
“We recommend to always check in advance to confirm whether larger notes will be accepted.”
