Pound to euro exchange rate: Sterling rises to six-week high as Parliament is suspended

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The pound to euro exchange rate benefited from a rally at the start of the trading week yesterday. July’s UK growth figure beat expectations and rose from 0 per cent to 0.3 per cent, a notable improvement on June’s stagnation, resulting in GBP improving and pushing to a six-week high against the euro. Politics and the question of Brexit will continue to influence the UK’s currency, experts have said. However, with Parliament suspended and MPs sent home until the middle of next month, significant rallies will likely not be possible.

Looking ahead at today, the focus will be on July’s labour market figures.

The pound is currently trading at 1.1189 against the euro this morning, according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke to regarding the latest exchange rate figures. 

“Sterling resumed its recent rally on Monday, gaining 0.5 per cent against the common currency as concerns over a no-deal Brexit, in addition to those over a possible technical recession, receded,” said Brown.

“The pound’s gain pushed the currency to a six-week high against its European counterpart.

“Despite MPs having been sent home, and Parliament suspended until mid-October, political headlines will remain the primary driver of the pound, as UK-EU negotiations continue.

“This should keep a lid on the pound, preventing any significant rallies.

“However, in the immediate-term, today’s focus will be on July’s labour market figures for continued signs of tightness.”

So what does this mean for Britons heading to Europe and looking to withdraw holiday money?

The Post Office is currently offering an exchange rate of €1.0869 for over £400 and €1.0923 for over £1,000.

It’s important when going away to swap your foreign currency back into pounds as you could be missing out.

Research by currency exchange service WeSwap showed the average trip sees British holidaymakers return with £90 in holiday money.

If swapped back into pounds, this sum could buy households the following over a week’s worth of groceries for the whole family (average cost of a family food shop costs £60.60 according to ONS statistics).

A third of families who took part in the Post Office Travel Money this summer admitted they were caught out by extra charges averaging £120 on their last holiday.

“It is worth bearing in mind that it is best to find free ATMs while abroad,” CEO of WeSwap, Jared Jesner said.

“You can also avoid further charges by withdrawing more money less often. And if an ATM or merchant asks if you want to be charged in the local currency, always say yes.”

For those looking to buy cheap flights this September, there are four top tips you should know. One of FairFX’s top tips is to check multiple flight departure dates. Their research revealed changing your departure date by just two days could result in big savings.

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