The pound plummeted against the euro last Thursday before recovering strongly. The improvement came after it was announced further Brexit talks between the UK and European Union (EU) will take place. This raised hopes of a deal being agreed between the two sides before the 29 March deadline. The pound is currently trading at €1.142 against the euro, according to Bloomberg at the time of writing.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
“The GBP/EUR exchange rate was trading in the region of €1.141 ahead of the release of the UK’s latest growth figures,” Parsons said.
“If the report confirms that growth slowed in the fourth quarter of 2018 (as forecast by economists) the pound could spend the start of the week trending lower.
“Data from the Eurozone is limited ahead of Wednesday’s industrial production stats.”
Last week, the Bank of England downgraded its 2019 growth forecast to 1.2 per cent – the lowest level since the financial crash 10 years ago – citing Brexit uncertainty.
The European Commission also made sharp cuts to its growth and inflation forecasts on Thursday, sparking fears over the strength of the eurozone.
In the absence of UK economic data, one of the main catalysts for the pound euro pairing is Brexit, as the Prime Minister continues to seek “alternative arrangements” for the Irish backstop.
This could cause pound sentiment to drop as the pairing did on Thursday after there was no breakthrough in securing the legally binding changes Mrs May has requested.
Holidaymakers are urged to be savvy when it comes to buying holiday money and keep an eye on the market to make sure they are not losing out.
“All travel experts will tell you that, when it comes to travel money, it pays to be prepared,” Greg Baggio, Head of FX at WeSwap said.
“In order for holidaymakers to ensure they get the best exchange rates, they should be aware of important dates and plan when they buy their holiday money accordingly.
“WeSwap’s research has found that nearly half of all Brits find and buy their foreign currency in the space of one day, leaving them vulnerable to forces beyond their control that dictate the strength of the pound.
“When shopping across travel money providers, UK travellers should also shop across a period of time for a stronger rate.”
For holidaymakers concerned about how Brexit will affect their passport, the UK Foreign and Commonwealth Office (FCO) has issued its latest travel advice for Britons.
Should the UK quit the European Union without a deal, you need to have at least six months left on your passport.
These six months need to be left on your passport on the date of your arrival to an EU country.