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The pound to euro exchange rate has seen a fairly steady week amid a lack of decision surrounding whether the UK will strike a deal with the EU before December 31. Though experts are hopeful a deal is coming, a lack of clarity has seen the pound making few gains.
Traders will continue to keep the ongoing trade talks between UK and EU leaders in focus.
However, for the time being, the pound hasn’t seen much of a dramatic loss, though it is “treading water” against the common currency.
The pound is currently trading at a rate of 1.1217 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX said: “Sterling largely trod water against the euro yesterday, and is likely to do the same today, with the market continuing to wait for news from the post-Brexit trade talks, which has been lacking of late.”
Though it is not yet known what the fate of sterling would be in the event of a “no-deal” scenario, in previous months it has dropped dramatically when a lack of deal has threatened.
What’s more, when hope for an agreement has arisen, the pound has seen some positive gains.
The rapid fluctuations and fast-moving political developments can seem confusing to holidaymakers.
However, with the UK now heading away from its travel ban and the quarantine period set to reduce to five days, many Britons may be turning their attention to jetting off in the coming months.
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Travel corridors continue to operate, allowing for quarantine-free travel to some destinations.
One travel expert says the key to bagging the best rate is to try to stay up-to-date with any major developments set to take place.
Karen Gee, business development director for foreign currency provider Spendology recommends “tracking the market”.
“With so much change in the world right now, it’s hard to predict when exchange rates will be at their best,” she explained to Express.co.uk.
“There’s unprecedented volatility in the markets.
“So for someone who likes to get involved and do the research you can track the market yourself, wait until exchange rates increase and buy your currency when you judge it’s the best time bearing in mind your departure date.”
To lessen the impact of sudden changes, Rob Stress, CMO of peer-to-peer currency exchange platform WeSwap recommends planning when you will buy your 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,” he said.
“We’ve also done research that shows nearly half of Brits buy all their travel money in one sitting.”
In previous years this was usually the recommended way to purchase travel money and bag the best rates.
Yet, things are changing in the midst of coronavirus and Brexit.
Mr Stress explains: “It can be wise, however, to exchange half your holiday money now and half closer to when you go or if the pound strengthens.”
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