Pound to euro exchange rate: Sterling ‘shrunk for the first time since December 2012’

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Friday saw shockingly poor performance for the pound as the UK economy shrank for the first time since 2012.

The seven year low is likely to cause concern for many Britons, especially those looking to change travel money.

Andy Demetriades, Director of Treasury Solutions & Partnerships, told that it will be a quiet day for the pound today.

This may not be the positive news many are hoping for after the pound fared badly last week.

Friday was one of the worst days for the British economy since 2012.

Andy said: “The British economy shrunk for the first time since December 2012, after data released on Friday showed that second-quarter gross domestic product (GDP) in the UK contracted by -0.2 per cent.

“The currency markets were quick to heap yet more pressure on to an already beleaguered pound and posted fresh 2019 news lows below $1.21 versus the US Dollar and €1.08 versus the single currency.”

Andy added: “A quiet start to the trading week is expected with no major economic data due for release from the U.K. or the EU today.

“All eyes will be on the psychologically important 1.20 level versus the Dollar and 1.07 versus the Euro, both rates not seen since the night of the referendum itself.”

As of Friday experts were warning the pound to euro exchange rate was afflicted by “volatility”. 

GBP did manage to recover from a dip to new lows early Thursday morning. This saw sterling hitting figures not seen since August 2017.

“Significant data” from both the UK and Europe which could leave the pound more volatile, experts have said, while the UK’s latest GDP figures were also released.

For those travelling, what can they get for their money? The Post Office is offering €1.0544 for £400 to £499. You can get €1.0592 to the pound for sums over £1,000.

Tesco Bank, on the other hand, is offering a slightly better rate of €1.0589, up to €1.0594 over £1,000.

Martin Lewis has revealed another way to save money on your holiday.

The Money Saving Expert appeared on ITV to dispense his finanicial wisdom.  

Speaking on the channel, he said: “If going abroad this summer, it’s worth knowing that at 19 out of the 30 UK airports including big ones like Luton, Manchester and Edinburgh (not Gatwick or Heathrow) it’s not free to get dropped off at the airport – ridiculously they all charge for a 10-minute drop-off at the terminal.

“And over the last year, eight airports have hiked its fees – some charge as much as £4 for a five-minute drop-off (Stanstead), £5 for a 10-minute drop-off (Southampton) and a whopping £23 for a 30-minute wait (Luton).

“But this can be avoided. Almost all airports, even if there’s a charge to park right outside the terminal, have a free alternative area for drop-offs.”

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