The pound is currently trading at 1.1142 against the euro, according to Bloomberg at the time of writing. And low GBP levels could be set to continue as the week begins with political uncertainty. The new Conservative Party leader is set to be announced tomorrow, meaning before the end of the week either Boris Johnson or Jeremy Hunt will be the new British Prime Minister. According to Michael Brown, of Caxton FX, if the new Prime Minister’s Brexit plan moves towards a no-deal Brexit, this is also “likely to weaken the pound.”
He told Express.co.uk: “Sterling closed largely unchanged against the euro on Friday, though slid to an 11th consecutive weekly decline, extending the longest run on record, as political uncertainties continue to exert downward pressure on the pound despite relatively resilient economic data.
“Politics will remain the main focus in the week ahead, with the new Conservative Party leader set to be announced tomorrow.
“Markets will be focusing on the new Prime Minister’s Brexit plan, with any moves towards a no-deal exit likely to weaken the pound.”
Last week was no better for sterling, with Michael revealing on Wednesday currency was at a six month low due to Brexit uncertainty.
cHe said at the time markets had been “priced in the risk of a no-deal Brexit.”
He added: “The chances of such an outcome appear to have markedly increased over the past 24 hours, with both Conservative Party leadership contenders declaring the Irish backstop ‘dead’, seemingly blocking the route to further UK-EU negotiations.
“Sterling’s fall was exacerbated by mid-afternoon reports that Boris Johnson was investigating the suspension of Parliament to force through a no-deal exit.
“Despite increasing Brexit uncertainties, data showed the UK labour market remaining tight, with wages increasing at a strong pace, though this did little to arrest the pound’s fall.”
If you’re worrying about getting a good exchange rate, Martin Lewis, money saving expert, has offered five tips in the past to make sure you get the best deal.
His first tip is to ask yourself, “Would I be content with today’s rate?”
On the Money Saving Expert website he wrote: “Currency moves are complex. Anyone who says they know what’ll happen is a liar. I certainly don’t.
“If you’re worried, buy roughly half at today’s best rate, locking that in, and the rest at the best rate when you travel. If your real fear is rates plummeting, making your holiday unaffordable, play safe and buy more now.”
Martin also suggests getting a specialist overseas credit card.
He said: “Personally I just spend on my specialist overseas credit card which gives top rates as I spend. As these cards don’t add the usual three per cent ‘non-sterling exchange fee’ you get the same near-perfect rates banks get. Just ensure you repay in full each month.” (For more information on the best travel cards, visit http://www.moneysavingexpert.com/travel/travel-credit-cards).
Next, get a prepaid card. Apparently, unlike credit cards which require you to pass a credit check, anyone over 18 can get a prepaid card.
Martin said: “You usually load them with cash, locking in a rate on that despond on them later. Revolut is top for euros, dollars zlotys and Swiss francs, and WeSwap has a wider range of currencies.”
His fourth tip is to find top rates for foreign cash by using the Money Saving Expert TravelMoneyMax Holiday Comparison tool.
Finally, protect yourself against currency swings when buying cash now with the help of Travelex and Moneycorp.