The pound is currently trading at 1.1031 against the euro, according to Bloomberg at the time of writing.
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 fell to a two-week low against the common currency yesterday,” he said.
“The bulls firmly [took] charge of the euro in anticipation of Friday’s leaders summit on the recovery fund yielding a positive result.
“Today, the latest inflation figures shouldn’t be market-moving for the pound.
“Hence attention will remain on the latest coronavirus headlines, and news-flow in anticipation of Friday’s meeting.”
George Vessey, Currency Strategist at Western Union, commented on the UK inflation figures: “The British Pound rebounded from $ 1.2480 versus the US Dollar yesterday to brush the $ 1.26 handle this morning. The currency pair extended yesterday’s bounce after UK inflation data surprised to the upside. GBP/EUR has also climbed further north of the €1.10 threshold, though lacks upside momentum due to the stronger common currency.
“Earlier this morning, data revealed that UK inflation rose 0.6 percent y/y in June, a slight increase from the 0.5 percent in May and beating forecasts of 0.4 percent.
“According to the Office for National Statistics, higher prices on clothing and computer games drove the rate of inflation higher and offset falling costs of food, hotels and restaurants. The more optimistic data comes after weaker growth data yesterday, dampening hopes of a sharp economic recovery in the UK. Critical jobs data is up next tomorrow morning.
“Why has the pound has strengthened this morning? It’s primarily due to easing worries about deflationary pressures from the pandemic-induced economic downturn and the reduced probability of UK interest rates dropping into negative territory.”
Holidaymakers are advised to keep track of exchange rates and buy currency when they are favourable.
“Currency must play a pivotal role in holiday planning, and savvy holidaymakers should be keeping a very close eye on currency and its reaction to the latest political events,” Ian Strafford-Taylor, CEO of currency expert FairFX said.
Buying holiday money at the last minute is, therefore, a huge no-no.
What’s more, holidaymakers are warned against getting it at the airport when the rates will be unfavourable.
According to Martin Lewis’s Money Saving Expert website: “Whatever you choose, never buy your currency at the airport. Rates are hideous, as you’re then a captive audience.
“If you’ve left it late, at least order ahead for pickup at the airport, as rates are much better than simply walking up to a bureau.”