The pound to euro exchange rate has been on a slow decline since Friday’s high. Following the news of a Conservative majority on December 13, the pound reached its highest rate in almost three years. However, a disappointing round of Purchasing Managers’ Index (PMI) surveys, alongside the potential of a no-deal Brexit, has dampened what was a positive moment for sterling. Moving forward traders will look to political developments, as well as the announcement of UK employment figures, to determine which direction the currency will move.
“Today, while focus will remain on political developments, this morning’s employment figures will be closely watched for any further signs of softness in the labour market.”
However, despite a lower placement this morning, other experts believe the majority will offer a “bounce” to the UK economy.
Nigel Green, chief executive and founder of deVere Group believe the Tory majority will “finally end the Brexit deadlock.”
He added: “Billions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis is now ready to be unleashed. This will give a much-needed boost the slowing British economy.”
So, how will the ongoing political turbulence affect travel money?
The changing rates will undoubtedly determine how much you get for your money, but careful research and preparation can ensure travellers get the best rates possible.
The Post Office is currently selling the euro for 1.1531 for buys of £400, and 1.1760 for buys of £1000 or more.
However, for travellers concerned about spending money, there are other ways to save on a holiday.
Travellers can be strategic about the dates they choose to fly abroad, potentially saving hundreds on their flights.
According to Expedia: “As a general rule, the less convenient the flight, the cheaper it is likely to be.”
Findings from travel comparison website Kayak found that Tuesday is usually the cheapest day to fly.
Meanwhile, research by Holiday Hypermarket, suggests that passengers can cut costs by opting for weekend travel, so one could aim to depart on a Friday or Sunday.
It could save travellers “hundreds”.
Ian Crawford of Holiday Hypermarket says: “We analysed holiday prices from all of the leading operators and it’s clear to see that if you can move your travel plans by just a few hours, couples and families can save hundreds of pounds on their holiday.”