The pound to euro exchange rate has experienced a turbulent week. GBP slumped to a two-week low at the start of the week but ended yesterday trading flat against the euro. European Central Bank (ECB) failed to shift the euro while risk assets didn’t spark improvement in sterling, experts have said.
However, according to the expert, the outcome of today’s summit is not expected to work wonders for the pound.
The pound is currently trading at 1.1030 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling traded flat against the euro yesterday,” he said.
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“The common currency was unmoved by a rather boring ECB decision, and the pound unfazed by a broader pullback in risk assets.
“Today, all eyes are on Brussels, where EU leaders are meeting to try and thrash out the details of the proposed recovery fund.
“While agreement on the €750billion package seems a distant prospect at the moment, the market will buy into any positive signs of compromise, even if a deal is not signed off today.
“However, with the market heavily long EUR, and these summits having a tendency to disappoint, the balance of risks is tilted to the downside for the common currency.”
So how do you know when to buy foreign currency for your holidays?
“With so much change in the world right now, it’s hard to predict when exchange rates will be at their best,” Karen Gee, Business Development Director for foreign currency provider Spendology, told Express.co.uk.
“There’s unprecedented volatility in the markets. So for someone who likes to get involved and do the research you can track the market yourself, wait until exchange rates increase and buy your currency when you judge it’s the best time bearing in mind your departure date.”
However, if you don’t fancy doing the leg work yourself, there is help available, such as Travel Money Club’s suite of automated tools, to help you navigate the exchange rate and work out when is best to buy.