The pound to euro exchange rate benefited from the strong wage growth and joint-highest rate of employment on record, it was revealed yesterday. The news saw GBP improve as UK unemployment rate dipped back to 3.8 per cent, employment increased to 32.78 and British workers received their largest pay rise in more than 11 years. However, despite sterling’s “firm tone” it remains under pressure as politics and the question of Brexit continue to serve as a barometer for the pound’s direction. Tomorrow sees the announcement of the European Central Bank’s (ECB) interest rate decision, resulting in “tentative” trading conditions today, said experts.
The pound is currently trading at 1.1192 against the euro this morning, according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling trod water against the euro on Tuesday,” said Brown, “though an upbeat labour market report helped the pound continue to strike a firm tone, despite not managing to make a sustained move to the upside.
“Trading conditions are once again likely to be tentative today, with market participants apprehensive ahead of tomorrow’s all-important ECB policy decision.”
David Madden, an analyst at CMC Markets, predicted a quiet period yesterday: “We’re going to have traders sitting on their hands between now and Thursday when the ECB [make] their announcement,” he said.
However, if ECB President Mario Draghi unexpectedly slashes rates or signals rates could be dragged into negative territory in the near-term, the single currency could plummet.
Brown added: “Of course, political developments will also continue to play a major part for the pound.”
So what does this all mean for British holidaymakers looking to buy travel money?
The Post Office is currently offering a pound to euro rate of €1.0926 for over £400 and €1.0978 for over £1,000.
For those concerned about Brexit’s impact on the exchange rate, it can be worth looking out for an all-inclusive holiday and check for price promises – when the price you pay is the price it will stay.
If you’re still looking to get away this month for a cheap holiday there are four easy tips to help you save up to £1,000.
Travel money specialist FairFX’s first top tip is to check multiple flight departure dates. Their research revealed changing your departure date by just two days could result in big savings.
Secondly, travellers should check alternative airports if they’re hoping to spend less.
The travel money specialists’ also advised flying on the right day of the week to save over a third. The last tip is to always compare package prices if you’re looking for a package holiday.
As for Britons hoping to bag a cheap cruise holiday – now is a great time fo year to bag a bargain sailing. This is all thanks to what is known as the shoulder season – the time between summer’s peak season and winter’s offseason.
Travelling at this time sees cruise lines lowering their prices and offering great cruise deals – are there will also be fewer crowds.