Pound to euro exchange rate: Sterling ’struggling for direction’ amid political turmoil

The pound to euro exchange rate stands as 1.1591 according to the latest figures from Bloomberg at the time of writing. This is slightly up on yesterday’s figure from Bloomberg of 1.1580, as at 7am.

However, while sterling is holding right now, political volatility in the coming weeks could see bumps in the road.

Michael Brown, Senior Market Analyst at Caxton FX gave his insight in the exchange rate today to Express.co.uk.

He said: “Sterling traded sideways on Wednesday, as a lack of political developments and economic releases left the pound struggling for direction, trading in a quiet manner.

“Nonetheless, political headlines will continue to dominate for the next six weeks as the election campaign continues, meaning that the near-term balance of risks for sterling appears tilted to the downside.”

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Meanwhile, the euro failed to gain on the pound following this week’s release of the French consumer confidence figure for October, which held on to its 20-month peak of 104. 

Analysts at Reuters commented: “Fears of unemployment have strongly receded in recent months which – together with the fiscal boost – helped consumers to restore faith in their future financial situation.

“Since the summer, they have been more confident in their future ability to save.”

What does all of this mean for holidaymakers? Should they exchange currency now?

Money Saving Expert Martin Lewis suggests opting for a credit card specifically overseas spending.

“If you normally spend abroad on debit or credit cards, while the providers get near-perfect rates, most add an up to three per cent ‘non-sterling exchange rate fee’ on top – meaning something that costs £100 costs you £103,” Lewis explained.

“Yet specialist overseas credit cards don’t add that fee, so you get the same near-perfect exchange rate as the providers – smashing bureau de change – in every country, every time you go away.

“Just ensure you pay the card off in full each month to minimise the interest.”

source: express.co.uk