Pound surges against the euro in exchange rate
The pound to euro exchange rate has “held up well,” said an expert this morning. GBP has soared, breaking well clear of the 1.13 mark. Sterling’s rise comes “despite significant furore in other corners of financial markets.”
Covid continues to be a driving force for the pound and the success of the vaccine rollout in the UK could see GBP improve further.
Little new data is due out today that will shift sterling.
The pound is currently trading at 1.1327 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
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“Despite significant furore in other corners of financial markets, the pound has continued to hold up well against the euro, re-testing and holding the 1.13 level overnight,” said Brown.
“The stage is now set for the pound to make further gains, particularly if the UK’s vaccination programme continues to outpace that of the EU.
“A quiet calendar, with no significant events on either side of the Channel, is due today.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.0884 over £400, €1.1042 for over £500, or €1.1099 for over £1,000.
Despite the favourable rates, it is unlikely anyone will be buying holiday money in the current climate, with foreign jollies not set to return for months.
Furthermore, you may end up losing out if you buy your currency now.
James Lynn, co-CEO and co-founder of Currensea told Express.co.uk: “It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable. However, I would advise against this.
“Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account over purchasing or exchanging and holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the pound has improved even more significantly than the level it is at today.
“On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.”
Lynn continued: “Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.
“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.
“The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”
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