Pound euro exchange rate ‘unchanged’ despite market upheaval – should you buy euros?

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The pound to euro exchange rate seemed to “ignore” toppling stock markets on Wednesday as the US and Europe attempt to battle rising coronavirus cases. Toughening anti-COVID-19 measures were also disregarded, with Brexit the focus instead, said experts. Looking ahead at today, the European Central Bank (ECB) will release a decision in the afternoon, keeping an eye on “any dovish surprises.”

The pound is currently trading at 1.1074 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 ended the day unchanged against the common currency yesterday,” said Brown.

“The pair ignored the equity market bloodbath and tightening coronavirus measures, instead focusing on the potential for a Brexit breakthrough.”

He added: “A similar theme will likely continue today, though this lunchtime’s ECB policy decision will be closely watched for any dovish surprises amid the rapidly deteriorating pandemic situation.”

So what does this all mean for your holidays and travel money?

Post Office Travel Money’s today’s online rates are marginally up on yesterday’s.

The currency service is currently offering a rate of €1.0679 for over £400, €1.0834 for over £500 or €1.0890 for over £1,000.

Travellers can get their holiday money on a prepaid card or in cash ahead of travel.

Travel cards will generally provide you with the best rate, making them much cheaper than cash.

What’s more, you can use travel cards in multiple currencies if you are travelling across several countries without the worry of multiple exchanges.

Other benefits include being able to withdraw local currency if and when you need it, there’s no need to worry about leftover cash, and you’ll get chargeback protection on your purchases.

However, an expert has warned holidaymakers should not get caught out – it might cost you.

‘Inactivity fees’ can kick in when travel card users don’t use their card for 12 months – which could be a particular problem during the coronavirus pandemic when travel is so limited.

Ian Strafford-Taylor, CEO of FairFX , warned: “Unfortunately, some prepaid card providers have started to introduce this fee since the outbreak of COVID-19 as a result of fewer people travelling abroad and using their cards.

“It’s completely unfair for providers to penalise customers who haven’t used their cards during such a difficult time when travel has not always been possible.”

These fees tend to be in the region of £3 per month.

Strafford-Taylor says it is vital cardholders check the terms and conditions of their plastic to ensure they are not currently being charged.

Experts generally recommend jet-setters use a prepaid card but also travel with a small amount of cash.

“We always recommend carrying some cash to avoid getting caught out when paying for items where plastic is not accepted, for example, when taking taxis, buying items at a market or filling up at some petrol stations,” Post Office Travel Money told Express.co.uk.

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