THE pound bounced slightly against the dollar again this morning — but is still on track to make strong gains since December.
Sterling is valued at $1.3616 as of 9.50am today, a rise of 0.6 per cent on yesterday.
Sterling bounced half a percent against the dollar this morning
It is also considerably better than the value less than a month ago, when the pound was down to $1.3312 on December 15.
Analysts at global investment banking giant Morgan Stanley have reportedly forecast the currency’s recovery to build momentum as the year goes on.
Strategist Gek Teng Khoo told Pound Sterling Live that traders were buying sterling throughout December.
And he said predictions for the pound were now mainly positive for the first time since the June 2016 Brexit vote.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
Towards the end of last year, sterling enjoyed a slight surge as the first phase of the Brexit talks were concluded.
With the value of currency so closely linked to the outcome of the UK’s departure talks, all eyes will remain firmly fixed on the remaining Brussels negotiations – with the toughest part, the trade talks, still to come.
Both the UK and the EU’s remaining 27 member states will face “substantial losses” without a deal on Brexit, according to a recent report.
Europe would be clobbered by 1.2million job losses if no agreement were reached, while Britain would take a 4.5 per cent hit to GDP, according to the Centre for Economic Policy Research.
Holidays can cost a fortune, so here’s how to save money while you’re out there
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