Thursday , April 2 2020

Pound to euro exchange rate: Slow start to sterling – should you buy holiday money today | Travel News | Travel

The pound to euro exchange rate starts the new week lower against the euro and other key currencies, and experts state they will be “closely watching incoming data releases”.

The pound is currently trading at 1.1690 against the euro, according to Bloomberg at the time of writing.

On Friday, MPs voted in favour of the third reading of the Brexit Withdrawal Agreement Bill – but sterling stayed ‘unfazed’ as the week came to a close.

Michael Brown, Senior Market Analyst for Caxton FX, told “Sterling struck a softer tone against the euro on Friday, as markets reacted to dovish comments from BoE policymaker Silvana Tenreyro, which increased expectations that the Bank will look to add stimulus to the economy over the coming months.

“However, with the comments heavily caveated on how the economy evolves, it is clear that the MPC will be closely watching incoming data releases. Therefore, this week’s GDP (Mon), CPI (Weds) and retail sales (Fri) reports will be closely watched and are set to be the primary drivers of sterling volatility in the week ahead.”

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Her points were followed by fellow Brexit policymaker Gertjan Vlieghe, who told the Financial Times he will consider voting for a rate cut depending on how the economy has performed since the election in December.

“It doesn’t take much data to swing it one way or the other and the next few [MPC] meetings are absolutely live,” he said.

“I really need to see an imminent and significant improvement in the UK data to justify waiting a little bit longer.”

As for today, experts believe this week’s GDP, CPI and retail sales reports are key to determining the performance of the sterling in the week ahead.

So what does this mean for Britons heading off on their holidays and hoping to buy travel money?

The Post Office is currently offering a rate of €1.1336 for over £400 and €1.1559 for over £1,000.

According to a survey from TravelSupermarket, many Britons favour all-inclusive holidays, with a whopping 55 percent of seven-night 2020 summer holiday price searches for families via TravelSupermarket are for all-inclusive.

It is a similar picture for couples, with all-inclusive packages being by far the most popular package holiday board choice, with 36 percent searching for all-inclusive holidays, followed in second place by room only (24 percent).

There has been a 28 percent increase in families searching for all-inclusive holidays this year compared with last year and a 13 percent increase for couples.

Interest is declining in room only and half board holidays, with a clear movement of people switching to all-inclusive options.

Emma Coulthurst, travel commentator from the holiday price comparison site, said: “Holidays are really important to Brits. But, keeping within a budget is really important to them. Volatile euro exchange rates over the last few years have also been drawing people to all-inclusive.

Ms Coulthurst added that the appeal of all-inclusive holidays is the guaranteed savings. “The only spending money they then need to factor in on top is for souvenirs, additional drinks (for example, specialist spirits might not be included), day trips and any meals out (if you want to, that is),” she said.

“All-inclusive takes away the hassle of having to choose where to eat and the worry of how much it is going to cost. Holidaymakers, especially families, love not having to venture far and having the basics that they need close by and already budgeted for.”

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