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In recent weeks Brexit has become the driving factor for the pound to euro exchange rate in recent weeks, with traders keeping a watchful eye on ongoing trade talks. Though the coronavirus pandemic has had a large impact on the exchange rate in recent months, with the UK’s final departure from the EU set for December 31, trade talks are at a crucial point.
However, it has been a largely quiet week for the exchange rate.
The pound is currently trading at a rate of 1.1211 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.
“As expected, markets were as flat as a pancake yesterday, with the closure of US desks for Thanksgiving significantly draining liquidity and thinning trading volumes,” he said.
“Sterling-euro went nowhere throughout the day, and is unlikely to go far today, barring any unexpected breakthroughs in the post-Brexit trade talks.”
Following the news that the UK travel ban is to be lifted when the current lockdown draws to a close on December 2, many Britons may be gearing up to jet off over the festive season.
Yet, with trade talks ongoing, it can be very difficult to predict when is the best time to exchange travel money.
“When it comes to travel money, with the peaks and troughs of the pound in light of Brexit, it’s difficult to plan when to buy your travel money,” pointed out Rob Stross, CMO of peer-to-peer currency exchange platform WeSwap.
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“We’ve also done research that shows nearly half of Brits buy all their travel money in one sitting.
“It can be wise, however, to exchange half your holiday money now and half closer to when you go or if the pound strengthens.”
If you do happen upon a good exchange rate, there is one way to lock it in that does not involve cash.
Travel money cards can be used much like a debit card when spending abroad, but do not incur the unexpected fees often associated with traditional bank cards.
They also maintain the exchange rate at the time of purchase.
This means that even if the pound loses strength, holidaymakers will benefit from a better exchange rate when spending abroad.
With high street travel money shops reopening their doors from December 2, Britons will also be able to shop around for the best rates.
One high street provider which offers its own travel money card is the Post Office Travel Money.
The Post Office Travel Money is currently offering a rate of €1.0807 for amounts of £400 or more, and rates of €1.1020 for amounts of £1,000 or mote.
It is also possible to purchase travel money online, which one expert says could be a more efficient way of snatching up the best possible exchange rate.
“While online, it’s also easier to make a quick rate comparison or check your bank account in the comfort of your home or office,” said Rehan Ansari, from international currency service Caxton.
“Sign up for a rate market alert on any of your currencies,” he added.
“It could potentially save you hundreds if the currency fluctuates.”
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