The pound to euro exchange rate saw little major movement over the weekend following Friday’s PMI results. Last week started on a high with sterling rocketing to a post-election high, however, it struggled to make any further gains as the week continued.
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With Prime Minister Boris Johnson pushing ahead in the coming months with further UK-EU talks, all eyes will remain on political relations to determine which way the GBP will move.
The pound is currently trading at a rate of 1.1976, showing a modest increase of 0.23 percent since the days opening.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX, said: “Sterling flatlined into the weekend on Friday, with the latest PMI surveys failing to give the pound any direction.
“This week, with the data calendar barren, investors will continue to monitor UK-EU relations before trade talks kick off next month.”
Friday’s flash PMI figures showed some reflection of the coronavirus’ effect on the global economy.
The epidemic began in China last month and has since spread globally.
Certain sectors have felt the impact more than others, with the travel and tourism industry, in particular, feeling the hit.
With travellers growing concerned about heading to areas where the virus rages on, countries such as Hong Kong have seen a major decrease in hotel stays.
The hospitality sector has seen the number of tourists arriving drop to a daily average of 3,000 compared with 20,000 for the same month last year.
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Furthermore, the Federation of Hong Kong Hotel Owners, made up of 86 members running around 200 hotels said on Wednesday that occupancy as a percentage no averaged in the single digits.
Meanwhile, the number of confirmed cases of coronavirus in Hong Kong has hit 65, with the death toll rising to two.
In the UK there have been a total of 13 confirmed cases so far.
With so much global turbulence, it can be difficult to predict which way the exchange rate will move next, which can be concerning for Britons heading on European getaways.
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The Post Office is currently offering a rate of €1.1496 for £400 or more, or a rate of €1.1722 for £1,000 or more.
Holidaymakers are advised to keep an eye on any relevant political or news updates which could see the rate rising or falling.
However, when the rate is good, travellers should consider locking it in with a travel money card.
Working in a similar way to a debit card, a travel money card will maintain the exchange rate of the day it was purchased.
Holidaymakers simply load a set amount onto their card and then can use it to spend in store or withdraw cash at an ATM.
Travel money provider WeSwap suggests that these travel money cards are a much more financially beneficial alternative to using your regular plastic on holiday.
A spokesperson explained: “With UK debit cards deducting up to around 3 percent in non-sterling transaction fees, in addition to 2 percent overseas ATM fee based on the amount you take out, once totalled up, we’re charged at a conservative estimate a colossal £125,000,000 in ATM fees abroad.”
Meanwhile, travel money cards tend to avoid these excessive fees for withdrawals or spending, meaning more holiday money to enjoy.
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