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The pound is starting the week on a high, enjoying its third straight day of gains. It comes after weeks of turbulence for the pound to euro exchange rate as coronavirus fall out continues to rock the economy, and Brexit concerns built up as the transition period end creeps ever closer.
The pound is currently trading as a rate of 1.0982 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX, spoke with Express.co.uk to share his exclusive insight into the current exchange rate.
“Sterling notched its third straight daily advance against the common currency on Friday, benefitting from a noticeably weaker euro to end the week on the front foot, chalking up back-to-back weekly gains,” he said.
“This week, the direction of travel for the pound will depend largely on the ninth round of post-Brexit trade talks, whether any progress is made, and whether talks move into the intensive ‘tunnel’ stage which could pave the way for agreement.
“Positive noises out of Brussels would likely be greeted with sterling upside.”
Officials representing the UK and EU are hoping to finalise deals before the end of October to allow some time to “ratify” plans ahead of the December 31 departure.
Though the impact of the coronavirus pandemic is being felt around the world, with the Brexit deadline ticking ever closer, this will largely lead the way for traders in coming weeks.
With this in mind, some financial experts have a bleak outlook for the future.
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“Weak UK growth is weighing on the pound’s attractiveness and pandemic-induced pressures combined with Brexit-related uncertainty could send sterling tumbling even lower over the coming months,” warned George Vessey, UK currency strategist, Western Union Business Solutions.
For Britons with holiday plans in the coming weeks, it may be difficult to determine when the best time to buy travel money is.
For the most part, the key is to plan ahead and stay up-to-date on any relevant changes which could impact sterling’s position.
However, sudden changes to travel corridors coupled in recent months mean holidaymakers may want to take a slightly different approach when it comes to purchasing their holiday money.
Rob Stross, CMO of peer-to-peer currency exchange platform WeSwap offered his insight into how Britons can lessen the impact of COVID-19 travel changes, as well as any sudden political developments.
“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.
“We’ve also done research that shows nearly half of Brits buy all their travel money in one sitting.
“It can be wise, however, to exchange half your holiday money now and half closer to when you go or if the pound strengthens.”
Travellers should also shop around in order to find the best rates on offer.
One additional method of securing a good rate is to opt for a travel money card.
These special cards can be used much like a debit or credit card when abroad, but without running the risk of additional unexpected charges.
They also maintain the exchange rate at the time of purchase.
One big-name travel money provider offering travel money cards is the Post Office.
The Post Office Travel Money is currently offering rates of €1.0536 for £400 or more or €1.0744 for amounts over £1,000.
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