The pound to euro exchange rate “tested the €1.17 handle” last week on Friday. This followed the knock-on effect of markets reacting to “dismal December retail sales figures.” Further data is due out this week which could be set to impact sterling.
Experts warn that two data releases could see the pound “struggle” if “softness” is noted.
The pound is currently trading at 1.1701 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.
“Sterling struck a softer tone against the common currency on Friday,” said Brown.
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Pound euro exchange rate: “Sterling struck a softer tone against the common currency on Friday”
Pound euro exchange rate: The pound is currently trading at 1.1701 against the euro
“[GBP fell] to test the €1.17 handle, after dismal December retail sales figures led markets to continue pricing in a BoE rate cut as soon as the end of January.
“Markets currently assign a roughly 70 percent chance of stimulus being provided at next week’s policy meeting.
“Before that, the final pieces of the data jigsaw are due this week, with Tuesday’s labour market report and Friday’s flash PMI surveys the highlights.
“Further softness in these two releases, particularly the latter, would see sterling struggle.”
So what does this mean for your holidays and travel money this week?
The Post Office is currently offering a rate of €1.1311 for over £400 and €1.1534 for over £1,000.
The good news announced this month for British holidaymakers is that Brexit will not affect holidays in 2020.
The UK is now on track to enter a transition period at the end of the month.
Pound euro exchange rate: Brexit will not affect holidays in 2020, ABTA has announced
This means that all travel requirements and arrangements will remain the same until at least the end of December 2020, travel association ABTA announced on Friday.
According to ABTA research, seven in ten people are planning a trip abroad this year.
Mark Tanzer, ABTA Chief Executive, said: “The UK is primed to enter a new Brexit phase from 31 January, when trade talks begin, and when it does nothing will change when it comes to travel.
“This means that valid passports can still be used, EHIC cards will still be valid and the same gates can be used at border checkpoints.
“People can continue to make their travel plans with confidence that things won’t change until at least the end of 2020.
“As the UK’s most trusted travel association ABTA has been actively providing advice to travellers throughout the Brexit process and will continue to do so as the longer term relationship with the EU becomes clearer.”
Rob Stross, CMO of WeSwap, shared is advice on the best way to buy travel money. He said: “When it comes to travel money, with the peaks and troughs of the pound in light of Brexit, it’s difficult to plan when to buy your travel money.”
He advised: “To try and keep ahead of the fluctuations, and even make the most of them, there are several rate alert systems you can use. Our Smart Swap feature is one example of these.”
Travellers should also be savvy about when they buy their money. “We’ve also done research that shows nearly half of Brits buy all their travel money in one sitting,” said Stross.
“It can be wise, however, to exchange half your holiday money now and half closer to when you go or if the pound strengthens.”