The pound to euro exchange rate has rocketed to impressive new heights. The rate is the highest it has been since the election thanks to new data, experts said. Earlier losses were reversed after new UK Chancellor, Rishi Sunak announced he would unveil the annual budget on March 11 as planned.
The boost is also thanks to the news that the UK labour market is in “good health.”
Office for National Statistics (ONS) statistician, Myrto Miltiadou said: “In real terms, regular earnings have finally risen above the level seen in early 2008, but pay including bonuses is still below its pre-downturn peak.”
Looking ahead at today, the focus will remain on the economy in the UK.
A CPI inflation release is due out which will be the “data highlight,” said experts.
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Pound euro exchange rate: The rate is the highest it has been since the election thanks to new data
Pound euro exchange rate: The pound is currently trading at 1.2031 against the euro
Post-Brexit trade relations between the UK and the EU will also be a focal point for markets.
On Monday, French Foreign Minister, Jean-Yves Drian said that the two sides could “rip each other apart” during trade negotiations, but insisted that this would be a necessary “part of the negotiations” for “everyone will defend their own interests”.
The pound is currently trading at 1.2031 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.
“Sterling struck a firm tone on Tuesday,” said Brown.
“It rallied to a fresh post-election high against the common currency, after data pointed to the UK labour market remaining in good health.
“Employment is at a record high, and earnings rising at a healthy – albeit softer – pace; while a dismal round of ZEW sentiment surveys did little to arrest the euro’s slide.
“Today, attention remains on the UK economy, with this morning’s CPI inflation release the data highlight.
Pound euro exchange rate: The Post Office is currently offering a rate of €1.1558 for over £400
“Markets will also be focused on any developments in UK-EU relations, as negotiators continue to trade barbs over the post-Brexit trading relationship.”
So what does this mean for Britons heading off of their holidays and looking to buy travel money?
The Post Office is currently offering a rate of €1.1558 for over £400 and €1.1786 for over £1,000.
Holidaymakers hoping to save the pennies should consider picking their holiday destination wisely.
The pound will go much further in some countries than it will others.
According to the latest Post Office Travel Report, some of the holiday hotspots that see the pound go further include Chile, South Africa, Mauritius and Turkey.
The pound is stronger against all of the local currencies in comparison with last year.
Britons heading to Chile can receive a cash bonus of £87 extra for every £500 worth of Chilean peso they purchase.
As for South Africa, in terms of the exchange rate, UK visitors will get over 10 percent more South African rand than a year ago, which will put an extra £47 in their pockets when they change £500