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The pound saw its first gain in five days against the euro yesterday. It comes following months of turbulence for the exchange rate in the midst of the coronavirus pandemic.
What’s more, with the end of the Brexit transition period creeping ever closer, it is likely this isn’t the end of dramatic fluctuations for the pound.
The pound is currently trading at a rate of 1.0896 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert from Caxton FX, shared his insights into the current rate.
“Sterling notched its first gain in 5 days against the euro yesterday, but has now given up the majority of that advance, with the pound being sold alongside risk assets as concerns over the coronavirus pandemic continue to mount,” he explained.
“Today, the pound will once more take its lead from shifts in risk appetite, while this afternoon’s remarks from BoE Governor Bailey will also be of some interest.”
It comes following the UK’s devolved governments reinstating new lockdown restrictions on the public over fears of the virus growing in the winter months.
Though Scotland and Wales have banned social interactions in homes and residences, England Prime Minister Boris Johnson emphasised he was “spiritually reluctant” to “infringe on anyone’s freedom”.
A second lockdown, however, could cause further devastation to the UK economy.
Sterling ‘slides’ in second daily loss amid Brexit ‘jitters’ [ANALYSIS]
Pound to euro exchange rate ‘volatile’ as sterling plummets amid Brexit [EXPERT]
Pound to euro exchange rate sees ‘biggest one-day gain since June’ [INSIGHT]
As with the last lockdown, this will likely hit the exchange rate with force.
Furthermore, as EU and UK leaders continue to negotiate trade deals ahead of December 31, traders will maintain a close eye on any political developments.
With this in mind, it may seem like a worrying time to try and secure good exchange rates.
Luckily, travel experts believe there are still some ways holidaymakers can get the most bang for their buck.
The key is staying up-to-date on any relevant and upcoming political developments.
Ian Strafford-Taylor CEO of travel money specialist FairFX, added: “Whether you’re paying by paper or by plastic, the best thing you can do is to plan ahead.”
Britons are also advised to lock in good rates when they find them, even if it is a little bit sooner than they might have planned.
“With Coronavirus and a looming Brexit deadline, there is a lot of uncertainty ahead, which means the pound is vulnerable to further fluctuations,” advised Mr Strafford-Taylor.
“Using a prepaid card gives you more control over exchange rates, whether you’re topping up before you travel or while you’re away, protecting you from unstable markets and further fluctuations.”
Travel money cards can be used in the same way as a debit or credit card but without the risk of additional charges and fees.
They also maintain the exchange rate from the time of purchase.
The Post Office is just one high street travel money provider that offers its own travel money card.
The Post Office is currently offering a rate of €1.0465 for amounts of £400 or more, or €1.0671 for amounts of £1,000 or more.
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