The pound to euro to exchange rate has failed to cling on to gains made this week. On Tuesday, GBP rocketed to a new post-election high, but its performance was not to continue. Sterling fell despite data emerging showing CPI inflation had jumped to a six-month high.
In January consumer price pressures rose by 1.8 percent year-on-year, compared to December’s 1.3 percent.
Although this isn’t far off the Bank of England’s 2 per cent target, senior UK economist at Capital Economics Ruth Gregory argued that the latest figures were “unlikely to move the dial on the outlook for interest rates”.
Meanwhile, the euro managed to recover after Tuesday saw the euro US dollar exchange rate plummet to a three-year low.
Figures from China showed that the number of new Covid-19 cases fell for the second day in a row, which boosted the single currency after yesterday’s increased fears the outbreak would weaken the German economy.
Looking ahead at today, the focus will remain on the pound, experts have said.
Retail sales figures are due out this morning and they are predicted to “snap a record-long five-month streak of zero growth.”
Meanwhile, the single currency could come under pressure today if Germany’s Gfk consumer confidence index shows the decline in sentiment forecast by economists.
The pound is currently trading at 1.1956 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.
“Sterling traded in a choppy manner against the euro,” said Brown.
“It held just above the 1.20 handle, as the pound failed to hold earlier gains made after data showed CPI inflation jumping to a six-month high.
“Today, focus will remain on the pound, as the UK’s economic health check continues with this morning’s retail sales figures; set to snap a record-long five-month streak of zero growth.”
So what does this means for Britons heading off on holidays and looking to buy travel money?
The Post Office is currently offering a rate of €1.1593 for over £400 and €1.822 for over £1,000.
It’s important to organise your holiday money well in advance of your trip to ask sure you’re not getting stung at the airport.
Currency expert FairFX recommends keeping a close eye on currency movements to help you buy at the optimum time.
What’s more, you could consider setting up a currency tracker which will alert you to good rates for you to take advantage of.
Ian Strafford-Taylor, CEO of FairFX, commented:“We all expect to pay a little more for convenience, but time and time again we’re finding that airport bureau de change desks are ripping off holidaymakers with extortionately high walk-up exchange rates.
As families head into Europe over the bank holiday, they risk losing out on valuable extra holiday money by leaving it so late to exchange their cash.”
“Holidaymakers are already at the mercy of rollercoaster currency rates thanks to continued Brexit uncertainty, but now risk further rate turbulence as the already high airport margins are getting worse still.
“The safest way to guarantee getting more currency for your cash is to plan ahead and avoid changing currency at the last minute at airport exchange desks altogether.”