The pound ticked higher against the common currency yesterday and continues to sit in a slightly heightened position. It’s a positive result after several weeks of turbulence as the Brexit transitional period came into fruition.
With political leaders still working hard to secure trade deals between the UK and EU, the fate of the pound remains in their hands.
Historically, the more likely a deal will be, the better the pound to euro exchange rate fares. Therefore, it is likely that strong UK-EU deals will only benefit GBP’s strength.
The pound is currently trading at a rate of 1.1882 against the euro according to Bloomberg at the time of writing.
This is an incline of 0.13 percent.
READ MORE: Travel money: GBP sees holiday money boost in spite of Brexit [DATA]
Pound to euro exchange rate: Sterling ticked slightly higher against the common currency
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton said: “Sterling ticked higher against the common currency yesterday in quiet trading conditions; with markets ignoring a fourth-quarter GDP release clouded by political uncertainties.
“Today, the calendar is bare, hence focus will fall largely on political developments.”
Despite concerns yesterday over the GDP, it seemed traders took little notice of any conclusions, instead maintaining focus on UK-EU trade relations.
Earlier in the week, Mr Brown pointed out the role political decisions have on the pound. He pointed: “Sterling was subdued on Friday, with a lack of any major headlines or data releases contributing to the quiet trading conditions.
“This week, sentiment around the pound will continue to be dominated by reports on UK-EU trade relations.”
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So, what does all of of this uncertainty mean for British holidaymakers jetting off to Europe?
The Post Office is currently offering a rate of €1.1399 for £400 or more, €1.1565 for £400 or more and €1.1624 for £1,000 or more.
For the most part, it is difficult to determine in which direction the pound will head.
As the GDP release proved, some political developments can go completely unnoticed by the market.
However, it is still good practise to stay up-to-date on any government or international deals that may see sterling strike a dull tone.
Despite, all of the political jitters of the last year, the Post Office Travel Money report found that sterling isn’t necessarily suffering as a result.
Experts found that sterling is stronger year-on-year against 80 percent of the top 40 currencies.
Each of the top 40 currencies were also found to be weaker than last summer.
British travellers who are flexible about their holiday destination could get more bang for their buck by opting for certain holiday locations.
Long-haul travellers should head to Chile, which scored top for value for money.
Visitors to Chile would earn £87 extra spending money for every £500 worth of Chilean peso.
However, when it comes to European getaways, Corfu was named one of the best money-saving hotspots.
The report suggested that Corfu is the ultimate money-saving destination with the cost of meals and drinks deducing 20 percent in the last 12 months.
However, barometer reported that prices dropped throughout the eurozone.
Alternatively, those looking for a metropolitan adventure should turn to Budapest.
Hungary currently boasts an agreeable exchange rate for Britons, with the Hungarian forint 10 percent weaker against sterling since last January.
Furthermore, sun-seekers could benefit from a Turkish escape.
Sterling is worth 19 percent more against the Turkish lira than a year ago.