The pound to euro exchange rate was weighed down by new data as the new year got underway for financial markets. The poor performance followed the release of manufacturing PMI figures. Ongoing uncertainties in the political sphere and Brexit also continue to dominate the pound.
Post-Brexit UK-EU trade discussions remain an influencing factor on the GBP to euro exchange rate.
As for today, with Parliament only set to return this week, investors will likely continue to focus on political developments, experts have said.
The pound is currently trading at 1.1749 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
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Pound euro exchange rate: GBP’s poor performance followed the release of manufacturing PMI figures
Pound euro exchange rate: The pound is currently trading at 1.1749 against the euro
“Sterling lost ground as the new year got underway for financial markets,” Brown said.
“The pound [was] weighed down by a poor round of manufacturing PMI figures and ongoing uncertainties surrounding post-Brexit UK-EU trade discussions.
“Today, with the economic calendar quiet, investors will continue to focus largely on political developments ahead of Parliament’s return next week.”
So what does this mean for Britons hoping to get travel money out for their holidays?
The Post Office is currently offering an exchange rate of €1.1367 for over £400 and €1.1591 for over £1,000.
According to new research from Sainsbury’s Bank Travel Insurance, January will be the most popular month for people to book holidays for the coming year, with 6.4 million people across the nation are looking to book getaways.
More than three-quarters of UK adults will go on holiday in 2020, spending an average of £757 each per getaway.
Cruises are the most expensive type of holiday with these holidaymakers planning to spend an average of £1,650 each.
Pound euro exchange rate: More than three quarters of UK adults will go on holiday in 2020
Sun, sea and sand is the biggest draw for UK holidaymakers with 40 percent choosing an overseas beach holiday this year.
The other most popular vacations are overseas city breaks (28 percent), UK city breaks (24 percent), UK seaside holidays and UK countryside and walking holidays.
Although holidaymakers are willing to spend significant sums on heading overseas, a fifth will not be buying travel insurance.
A further 22 percent will only buy their travel insurance in the week before they travel.
These statistics are concerning in light of Sainsbury’s Bank insurance claims data which found a typical travel insurance claim was £631 in 2019, nearly the average cost of the holiday people said they were planning.
The travel insurance claims data shows that half of all claims were due to medical expenses, 20 percent for lost or stolen personal possessions and 15 percent for cancellation, meaning travelling without insurance is a big risk to take when travelling abroad.
Jason King, Customer Director at Sainsbury’s Bank, said: “Booking a holiday at the start of the year will certainly help chase away those January blues.
“Taking it easy is one of the biggest draws of a holiday, however, unexpected events can happen. Think about what kind of travel insurance policy you need as soon as you’ve booked your holiday.”
Sainsbury’s Bank top tips for buying travel insurance include:
1. Single trip vs annual cover. How many holidays do you typically take in a year? Even though you may only have one holiday booked now, if you usually jet off later into the year it may be cheaper to buy annual cover.
2. Consider any medical conditions. Ensure you declare any medical conditions you may have and whether you may need to add on medical cover for pre-existing conditions.
3. Get cover for adventures. If you are heading to the ski slopes, make sure you have winter sports cover should you be involved in an incident.
4. Check for offers and discounts. When shopping around for insurance, make sure to take advantage of offers