The pound to euro exchange rate has shown no major improvement this week. However, GBP did manage to recover from a dip to new lows early Thursday morning. This saw sterling hitting figures not seen since August 2017. The UK GDP for Q2 is out today as well as “significant data” from both the UK and Europe which could leave the pound more volatile, experts have said.
The pound is currently trading at 1.085 against the euro this morning, according to Bloomberg at the time of writing.
Rehan Ansari, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“The only UK data release yesterday was the RICS House Price Index, the headline number released was -9 per cent in July compared to -1 per cent in June,” Ansari said.
“This indicated that London house prices are falling at the fastest pace since 2009. From the other side of the channel, there were no significant data releases at all.
“During the early hours of yesterday, the Pound continued its grind lower to print new lows at 1.0793, levels we haven’t seen since August 2017.”
“Today’s most significant data release will be the UK GDP for Q2 expected to come in flat quarter on quarter.
“Anything below 0 per cent will start the clock ticking to see if the UK economy is heading towards a recession.
“There will also be other significant data from both sides of the channel to fuel GBPEUR volatility.”
Brexit uncertainty also continues to affect GBP. Recent reports suggest the UK government is ramping up preparations for a no-deal Brexit even as rebel Conservative MPs are plotting to oust the PM by joining the opposition in a vote of no-confidence.
Even in the event of a successful no-confidence vote, the chance that Mr Johnson could delay a general election until after the Brexit deadline could leave the UK to crash out of the EU.
The uncertainty that surrounds the process has left investors reluctant to bet on GBP.
There is much uncertainty over how the UK leaving the EU will play out but it’s key holidaymakers protect themselves against all eventualities.
What does the political situation mean for British holidaymakers hoping to withdraw travel money?
Louis Bridger Head of UK at currency exchange provider, ICE (International Currency Exchange), advised: “Understandably it can be stressful thinking about how to get the most for your pound when there is still so much uncertainty around a Brexit decision.
“Our message is still to brace for uncertainty and poor sterling performance, but not to panic as there is a range of ways that Brits can be savvy and minimise any additional hits to their holiday money.
“My top tip would be to plan ahead and look at alternate services which let you lock in favourable rates, such as click and collect, or ordering your cash through home delivery.”