Pound to euro exchange rate ‘holds 10-month highs’ – should you buy travel money?

Travel money: Post Office introduce multi-currency pre-paid card

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The pound to euro exchange rate rose to hit 10-month highs last week and continues to build on that today. GBP is holding those highs as Covid continues to prove a barometer for sterling’s movements. The triumph of the coronavirus vaccine rollout has boosted the pound no end in recent weeks.

A big step forwards for the UK comes today as Prime Minister Boris Johnson reveals his roadmap for the way out of lockdown today.

A “slower than expected pace” could result in the pound descending, said experts.

The pound is currently trading at 1.1548 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 comes into the new trading week holding near 10-month highs against the common currency,” said Brown.

“The quid continues to benefit from the UK’s Covid vaccination programme, which has now inoculated one in three adults.

“Looking ahead, the main event for the pound today will be the PM’s address outlining the ‘roadmap’ out of lockdown.

“A slower than expected pace poses downside risks for the pound, particularly if slower than the market is expecting.”

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

The good news is, travel money providers are offering much more favourable rates than before the exchange rate hike.

Post Office Travel is currently offering a rate of €1.114 over £400, €1.1302 for over £500, or €1.1359 for over £1,000.

However, experts warn against buying holiday money while uncertainty continues to reign amid Covid.

“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,” James Lynn, co-CEO and co-founder of travel debit card provider Currensea, told Express.co.uk.

“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.”

He continued: “On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.

“Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.

“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.

“The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”

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