Today all eyes will be set to be on Chair of the Federal Reserve, Jerome Powell, who will speak at the virtual 2002 Jackson Hole economic policy symposium.
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“Looking ahead, the Pound should continue to take its cue from shifts in global risk appetite, meaning that this afternoon’s remarks from Fed Chair Powell are the main event to look out for.”
George Vessey, Currency Strategist at Western Union, commented: “The Pound is over five percent weaker against the Euro year-to-date, but this month has staged a welcome comeback, climbing a modest 0.4 percent at time of writing.
“The currency pair looks to have broken north of a downtrend channel though and more upside may be on the cards if the €1.12 threshold gives way.
“Propping up the European common currency this year is the EU’s historic stimulus package, which boosted investor confidence of renewed unity and cooperation in the bloc and boosted demand for European assets.
“However, the Pound continues to shrug off domestic uncertainties and its correlation with global risk appetite has seen GBP/EUR stretch higher.
“Meanwhile, Germany extended a crisis tool to prevent corporate bankruptcies by suspending insolvency filings, which has raised alarm bells that a wave of bankruptcies in Germany is looming.
“For now, the tools are supportive, but confidence may be tainted in the future.”
So, what can Britons who want to buy travel money for their holidays expect today?
The Post Office is today offering an exchange rate of €1.0714 online, for more than £400.
Spending £500 or more enables individuals to access an online rate of €1.0869.
Should one spend £1,000 or more, the exchange rate changes to €1.0925.
Holidaymakers are often recommended to monitor the exchange rate ahead of their holiday, to ensure they purchase the currency at an optimum time.
While buying holiday money at the airport may be of convenience, a warning has been issued about the rates.
This is because unfavourable rates to the consumer are often offered there.
TotallyMoney CEO, Alastair Douglas, said on the matter: “Summer holidays are a highlight for so many families, and lots of planning goes into creating the perfect trip.
“Unfortunately, lack of financial planning means people are losing money.
“Poor exchange rates at the airport and using the wrong card abroad mean people end up spending more money than they need to.
“Understanding the fees involved can help people have a bit more spending money in their pocket.”