The pound to euro exchange rate saw GBP improve slightly on Wednesday afternoon. The boost came after July’s year-on-year Spanish industrial output fell below forecasts from 1.6 per cent to 0.8 per cent. This resulted in dampened market confidence in the Eurozone economy and the euro being “subdued.” The common currency’s “tentative trading” precedes the ECB’s policy decision revealed today, which is expected to remain flat at zero per cent.
The pound is currently trading at 1.1192 against the euro this morning, according to Bloomberg at the time of writing.
GBP benefited from a speech by Labour Deputy Leader Tom Watson yesterday in which he called for his party to “unambiguously and unequivocally” back remain and a second referendum before a general election.
Watson said: “The only way to break the Brexit deadlock once and for all is a public vote in a referendum. A general election might well fail to solve this Brexit chaos.”
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling chalked up a modest gain against the euro on Wednesday,” explained Brown.
“The common currency trading tentatively as apprehension grew ahead of today’s ECB policy decision.
“This lunchtime, policymakers are expected to announce a significant stimulus programme, in an attempt to turnaround the ailing eurozone economy.
“Should the stimulus be more far-reaching than expected, the euro will likely depreciate.”
Shaun Osborne, Chief Currency Strategist at Scotiabank, said that the mere thought of the ECB’s easing monetary policy had put the euro on the defensive.
Analysts at the National Bank of Canada were also downbeat: “We think [President of the ECB] Mario Draghi and other more dovish officials will win the day when it comes to [Quantitative Easing].”
So what does this all mean for British holidaymakers looking to buy travel money?
The Post Office is currently offering a pound to euro rate of €1.0940 for over £400 and €1.0995 for over £1,000.
For holidaymakers who are apprehensive about when to withdraw holiday money, Rob Stross, CMO of peer-to-peer travel money provider WeSwap advises: “In order for holidaymakers to ensure they get the best exchange rates, they should be aware of any important dates in the political calendar and try to plan when they buy their holiday money accordingly.” A very good idea when it comes to buying travel money is to not buy it all in one go.
“WeSwap’s research has found that nearly half of all Brits find and buy their foreign currency on a single day, leaving them vulnerable to forces beyond their control that dictate the strength of the Pound,” said Stross.
“When shopping across travel money providers, holidaymakers should be aware of any up and coming big political dates and stagger travel money purchases accordingly, such as buying half of their currency beforehand and half afterwards as a simple way to mitigate risk.”