The pound to euro exchange rate increased for the first time in three days on Thursday. Political uncertainty has been attributed to GBP’s poor performance in recent weeks. A dovish set of minutes from the European Central Bank’s latest policy meeting also served to put sterling under pressure. Furthermore, the pound’s gains have 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.
Experts have cautioned that the pound is unlikely to show much further improvement today.
The pound is currently trading at €1.113 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 recorded its first daily gain in three days against the euro on Thursday,” said Brown.
“The single currency came under pressure after a dovish set of minutes from the ECB’s latest policy meeting.
“The minutes showed policymakers considering restarting the ECB’s QE programme, along with cutting rates, while also stating their ‘determination to act’ to ensure that the 2 per cent inflation target is met.
“Today’s data calendar is relatively limited, barring eurozone industrial production figures, though this is not typically a major market mover.
“Hence, sterling should remain largely rangebound as markets continue to digest ongoing UK political uncertainties and the prospects of additional ECB stimulus.”
It is also likely the pound may struggle following a speech from the Bank of England’s Gertjan Vlieghe.
If Dr Vlieghe mentions monetary policy and his tone is overly dovish it could dampen sentiment in sterling.
Meanwhile, the euro could rise following the release of the Eurozone’s industrial production data.
So what does this mean for British holidaymakers heading abroad this week?
The Post Office is currently offering a rate of €1.0868 for over £400 and €1.0918 for over £1000.
Holidaymakers are advised to buy their Travel money sensibly. Ways to do this include: pre-ordering cash on the internet, shopping around for the best exchange rate, 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.