The pound is continuing on its dire path of falling figures, with the exchange rate declining for the eighth consecutive day on Thursday. Experts suggest this is not likely to improve, with further signs of “struggle” on the political sphere. Brexit negotiations between the Conservative and Labour party have come to an apparent statemate, ahead of the October 31 exit date, impacting both politics and the economy. The pound is currently trading at 1.145 against the euro, according to Bloomberg, at the time of writing.
Michael Brown, currency expert ay Caxton FX, talked through the pound’s ongoing downward spiral with Express.co.uk.
He said: “Sterling declined against the euro for an eighth consecutive day on Wednesday as the continued Brexit deadlock combined with a decrease in risk appetite to exert downward pressure on the pound.
“With the impasse showing little sign of being broken, along with a lack of major economic releases from either side of the pairing today, the pound may struggle to find significant support.”
The stalling of Brexit negotiations has had continual impact on sterling through the week – all the while for the worse.
Yesterday, the release of employment figures did nothing to ease the situation.
Michael added Brexit – which marks the UK’s separation from the EU following a referendum in 2016 – remains the key influence.
He said: “Overall however, markets will continue to look to Westminster and any political headlines for direction.”
Sterling slumped after the key vote and has not, as yet, reached levels prior to it.
Today’s bleak forecast is sure to worry holidaymakers jetting off for the second May Bank Holiday weekend, fearing they will not get the most from their euros.
Peter Rudin-Burgess from CompareHolidayMoney.com told us: “The UK economy is still falling behind the Eurozone which was disappointed with its growth figures of 1.2 per cent announced earlier this week.
“It would be wise for UK travellers to buy their currency sooner rather than later if this trend continues.
“Many holidaymakers leave currency purchases to the last minute and buy just before travel, however this results in money saving opportunities being missed.
“Being a bit more savvier, consumers could save up to £150 of a £1,000 holiday budget if they plan their holiday currency in advance.
“We always encourage people to monitor key economic announcements in the News like the above and use a travel money comparison website to identify ideal times and the best value outlets to exchange currency. This approach will ensure holiday money goes further.”