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Pound to euro exchange rate ‘rangebound’ as GBP struggles – should you buy travel money?

Looking further ahead, attention is likely to focus on the Bank of England’s (BoE) monetary policy meeting on Thursday.

George Vessey, Currency Strategist at Western Union, commended on the impending decision: “Although no changes to policy are expected to be announced, the BoE is actively reviewing the prospect of Negative Interest Rate Policy (NIRP), which would likely weaken the pound.

“For now, it seems more likely the central bank will await more clarity on UK-EU trade talks before implementing NIRP, although money markets are already pricing in negative rates for early next year.

“Final UK PMI surveys will also be released this week, with manufacturing PMI today expected to confirm the sector remains in expansion.”

READ MORE: Canary Islands officials say travel ban could be lifted

Investors also continue to concentrate on the coronavirus pandemic.

There are currently 307,251 confirmed cases of the deadly virus in the UK.

Sadly there have been 46,295 deaths.

The pound is currently trading at 1.1104 against the euro, according to Bloomberg at the time of writing.

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Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.

“Sterling remained rangebound against the euro on Monday, with 1.11 continuing to provide solid support,” said Brown.

“The pound struggling to take advantage of the more positive risk tone yesterday.

“Today, there is little of interest on the economic calendar from either side of the pairing, hence attention may start to turn towards Thursday’s BoE decision, where no change to policy is expected.”

So what does this all mean for British travellers looking to buy holiday money?

Major currency providers have once again opened their doors to customers after many weeks of closure during lockdown.

The Post Office is currently offering a rate of €1.0713 for over £400, €1.0868 for over £500 and €1.0924 for over £1,000.

However, some people worry about the risks of handling cash during the coronavirus pandemic.

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Research by foreign currency provider Spendology in June showed that people ranked cash number three in terms of exposure to bacteria and viruses after door handles and public transport.

Fortunately, there are ways to protect yourself when handling money.

Ian Strafford-Taylor, CEO of travel money specialist FairFX, advised making sure you wash your hands thoroughly after handling cash if you’re worried.

“There may also be some hesitation amongst holidaymakers when it comes to handling cash, with fears that it may spread germs or be contaminated,” he said.

“The safest thing to do, whether you’re using cash abroad or in the UK, is to make sure you wash your hands thoroughly after handling coins or notes and to avoid touching your face.”

Strafford-Taylor also warned against leaving buying holiday money until the last minute.

Bureau de change desks at many airports remain closed as a result of the pandemic, meaning those who wait until they’re at the airport to get their travel money are left in the lurch, often having no choice but to use credit or debit cards on holiday instead,” he said.

“Unfortunately, paying by credit or debit card overseas can open you up to a number of spending traps that can easily leave you out of pocket – especially if you haven’t planned to use your card abroad.

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“The likes of overseas transaction fees, dynamic currency conversion (DCC) and fees for using an ATM machine while in a foreign country can soon add up.”

Source Daily Express :: Travel Feed

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