The pound to euro exchange rate “dipped” over the course of Wednesday due to political uncertainties weighing heavily on GBP. The pound’s “subdued” action came after sterling slumped to a six month low this week. Policy stimulus from the minutes of the European Central Banks’s (ECB) June policy meeting could serve to weaken the euro, experts have said. However, this is unlikely to spell good News for GBP with “rallies likely to be capped.”
The pound is currently trading at €1.112 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 traded against the euro in a subdued manner on Wednesday, with broader market focus falling on the increasing likelihood of looser monetary policy in the US,” said Brown.
“The pound dipped around 0.1 per cent against the common currency over the course of the day, as political uncertainties continue to weigh.”
The pound’s gains have also been held back this week by Tuesday’s debate between Conservative leadership candidates Boris Johnson and Foreign Secretary Jeremy Hunt.
Johnson refused to rule out suspending Parliament for a no-deal Brexit, saying that it would be “absolutely bizarre” to take it off the table.
Sterling traders have become increasingly jittery over increasing no-deal fears.
Brown continued: “Turning to the day ahead, focus will fall on the release of minutes from the ECB’s June policy meeting, with any signs of further policy stimulus being imminent likely to weaken the euro.
“However, the pound may find it difficult to take advantage of any weakness, with sterling rallies likely to be capped by political concerns.”
So what does this mean for British holidaymakers heading abroad this week?
The Post Office is currently offering a rate of €1.0861 for over £400 and €1.0911 for over £1000.
It’s key to be savvy when buying holiday money to prevent losing out due to the exchange rate.
There are a number of ways you can save. Tips range from pre-ordering cash on the internet and shopping around for the best exchange rate to avoiding buying Travel money at the airport and using specialist cards with low fees to take money abroad.
It’s also worth working out the fees on cash machine withdrawals overseas.
Britons should also make sure they buy travel insurance ahead of their trip away.
Spain holidaymakers are being urged to be careful when it comes to buying insurance, however. Certain insurers have been accused of dodgy practices by The Spanish Association of Private Hospitals which allegedly see holidaymakers misled on what they get for their money.