Travel: Lisa Nandy calls for ‘more robust approach’
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The pound to euro exchange rates had a strong few weeks of growth behind it before devastation struck yesterday. Sterling plummeted to “fresh two-month lows” according to one financial expert, meanwhile, another has warned Brexit remains a concern for traders.
The pound is currently trading at a rate of 1.1560 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk to share his exclusive insight into the exchange rate.
“Sterling sank to fresh two-month lows against the common currency yesterday, with strong month-end demand for the euro continuing, and the pound struggling to find much love,” he said.
“Today’s economic calendar is nearly completely empty, meaning that the aforementioned flows will remain the main driver of price action.”
Experts also remain conscious of ongoing Brexit changes which are still falling into place.
“Optimism in the Bank of England (BoE) raising interest rates climbs as comments from the BoE Governor Andrew Bailey brushed off concerns about rising inflation and hinted at tapering in Monday’s testimony,” explained George Vessey, currency strategist at Western Business Solutions.
“Although sterling positive, the pound didn’t move much on the back of the comments as direction is currently being steered by the dollar.
“The pound has taken advantage of the weaker dollar, climbing towards the $1.42 handle and remains just shy of €1.16 against the Euro.
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“This is despite European Commission (EU) President Ursula von der Leyen remaining firm on her Northern Ireland (NI) protocol commitment as all 27 members of the bloc agreed to keep the term intact after the latest EU summit, which ended in the early hours of this morning in Asia.
“EU’s Von der Leyen said Brexit talks are in the pipeline.
“With the lack of UK economic data to lean on, the pound will continue to take directional cues from the dollar and US economic data.
“Should concerns arise on Brexit and the NI protocol, sterling could soon be impacted.”
For Britons heading on holiday, the sudden decline of the pound’s position could be concerning.
However, travel money experts have warned holidaymakers not to rush to exchange their foreign currency unless they are certain their holiday is going ahead.
On June 7, a second review of the Government’s “traffic light” list for travel is due to take place.
While it could mean more nations are added to the “green list”, offering more opportunities for holidays, it could also see some countries being removed or placed on the “green watch list”.
James Lynn, CEO and co-founder of Currensea, added: “While its excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers.
“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.
“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.”
However, he added that once travel plans are given the green light, preparation is key.
“Do not exchange your money last minute at the airport, the rates are generally much less favourable than online or high-street alternatives, so preparation is key,” said Mr Lynn.
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