The pound to euro exchange rate increased, albeit marginally, yesterday as the trading week got underway. It was the second day in a row GBP saw an advance. The improvement contrasts to last week when sterling fell for five days in a row.
So does the week ahead hold more favourable conditions for the pound euro exchange rate?
According to an expert, political headlines will continue to impact GBP’s movement as the Brexit debacle rages on.
He cautioned that, with so much uncertainty, pound appreciation “will remain something of a long shot.”
The pound is currently trading at 1.0887 against the euro, according to Bloomberg at the time of writing.
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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.
“Sterling notched a second straight, rather modest, daily advance against the euro on Tuesday,” said Brown.
“Trading conditions were rather quiet owing to both a lack of notable political headlines and a degree of apprehensiveness ahead of today’s FOMC decision.
“Today, political headlines will once again be the primary driver of the pair, with this morning’s UK inflation figures likely to be ignored.
“Nevertheless, so long as political uncertainties persist, meaningful sterling appreciation will remain something of a long shot.”
George Vessey, Currency Strategist at Western Union, commented on the rest of the week ahead.
“On Wednesday, UK inflation and US retail sales data are published, and new OECD forecasts will also be published providing an update on economic recovery prospects over the next few years,” he said.
“On Thursday, final Eurozone inflation numbers are due, an important topic dominating central banks at present given short-term deflationary woes, and on Friday UK retail sales wraps up the busy week.
“Macro data is becoming more useful to gauge the strength and momentum of the economic recovery across the globe, although general risk sentiment continues to be driven by second wave fears and vaccine developments.”
So what does this mean for holidays and your travel money?
The Post Office is currently offering a rate of €1.0427 for over £400, €1.0579 for over £500 or €1.0633 for over £1,000.
The best way to make sure you’re getting the most bang for your buck when it comes to purchasing holiday money is to monitor the exchange rate.
Marianne Gilmore, Managing Director, Private International Payments at currency provider moneycorp advised the first step should be to check on how the currency you want to buy has changed over the past month.
“Consider your desired currency’s previous rate fluctuations in the last month,” she said.
“From these values, budget a realistic window as to what rate you’d be willing to exchange on, bearing in mind that an additional commission fee may apply when you actually exchange your money.”