The pound to euro exchange rate volatility is far from over in 2020, experts have said. Last year saw Brexit frequently provide a barometer for sterling’s movements. However, political developments will continue to have a heavy bearing on the pound’s movements this year too.
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At the end of 2019, sterling was on a “relatively firm note,” explained experts.
This was partly thanks to “thinner than usual festive trading conditions.”
As for today, new figures will be released which could impact GBP.
The latest manufacturing PMI figures will be the focus.
These are expected to show activity in the sector contracting for an eighth straight month.
The pound is currently trading at 1.1795 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling ended 2019 on a relatively firm note, benefitting from year-end flow-related euro weakness in thinner than usual festive trading conditions,” he said.
“Today, attention will likely centre on the latest manufacturing PMI figures, expected to show activity in the sector contracting for an eighth straight month.
“Nonetheless, in the year ahead, political developments will continue to drive sterling volatility, with market participants heavily focused on UK-EU talks over a post-Brexit free trade agreement.”
So what does all this mean for British holidaymakers heading off to avoid the January blues?
The Post Office is currently offering an exchange rate of €1.1276 for over £400 and €1.1498 for over £1,000.
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With the pound doing well at the moment, could now be the best time to buy travel money for your holidays?
Rob Stross, CMO of WeSwap advised: “It goes without saying but when the pound is riding high, it’s a good time to buy your travel money.
“But sometimes it can be hard to know whether to stick or twist. What if the pound gets even stronger?
“We’d recommend doing some research, seeing when the pound was last this strong and keeping an eye on upcoming political events.
“Remember, the FX market likes stability. If you can’t bring yourself to exchange all your money at once, consider exchanging half your money now and half if the pound strengthens even more or starts to weaken.
“If you don’t want to miss out on future market highs, there are several rate alert systems you can use.”
Stross also advised against buying holiday money at the last minute as train stations and airports nearly always “offer awful rates.”
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