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George Vessey, UK currency strategist, Western Union Business Solutions, also shared his insight on yesterday s performance.
“Sterling jumped to a 10-month high versus the Euro. breaching the key €1.15 handle after UK inflation data came in above forecasts. A splurge in spending for furniture, household goods and food drove inflation higher in January, whilst clothing and footwear prices remained subdued. The UK Consumer Prices Index (CPI) 12-month rate came in at +0.7 percent in January compared to +0.6 percent in December while beating expectations of a +0.5 percent print.
Pound euro exchange rate: GBP is expected to climb once again (Image: Getty Images)
THE POUND to euro exchange rate continues to rise at its trades well against the euro, experts have said. This comes after GBP hit nine-month highs on Monday. What does it all mean for your holidays and travel money?
However, James Lynn, co-CEO and co-founder of Currensea has suggested some would-be holidaymakers may want to hold off exchanging their money for now.
He Express.co.uk: It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable. However, I would advise against this. Market movements are often more marginal in reality than they appear. Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account over purchasing or exchanging and holiday money. Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the pound has improved even more significantly than the level it is at today.
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What s more, he said the future was too uncertain to know whether holidays would go ahead by the summer.
However, people travelling for essential reasons are able to travel to some destinations.
Furthermore, many would-be holidaymakers may be looking to switch their foreign currency back to pounds if their plans have now been cancelled.
Post Office Travel is currently offering a rate of €1.0976 over £400, €1.1135 for over £500, or €1.1099 for over £1,000.
Despite the favourable rates, one foreign currency expert suggests now may not be the time to switch euros back into pounds.
Map of European currencies (Image: DX)
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James Lynn, co-CEO and co-founder of Currensea told Express.co.uk: It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable. However, I would advise against this.
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George Vessey, UK currency strategist for Western Union Business Solutions said: “The Bank of England s (BOE) rejection of early implementation of negative interest rates gave the British Pound a boost last week and sent GBP/EUR to its highest level since May last year.
“The rapid vaccine rollout in the UK is also deemed GBP positive along with overall improved global risk appetite.”
“It remains to be seen whether the rapid distribution of vaccines will continue to protect the pound from the UK s negative current account and trade uncertainties, but so far GBP/USD has consolidated above $1.37, potentially primed for a move above $1.38 this week, whilst GBP/EUR remains atop €1.14 this morning.