Pound to euro exchange rate: Tory favour sees pound soar

The pound has hit a six-month high against the euro as markets continue to price based on the likelihood of a Conservative party majority following the 12 December election. However, with a live TV debate between Boris Johnson and Jeremy Corbyn tonight, attention is likely to shift and with the outcome potentially causing a ripple effect for sterling. While opinion polls currently point to a Conservative majority, propositions put forward by both parties this evening could largely shake up the public view, and in turn rock the exchange rate.

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Despite the uncertainty that lies ahead, the pound is the strongest it has been in recent months.

The common currency has suffered a series of soaring highs and plummeting following the announcement of Brexit in 2016.

While the proposition of a ‘deal’ has helped boost the pound, a no-deal threat has lowered its position once more.

Now, with the general election looming, all eyes are on the leading political parties to determine the future of the UK.

The pound is currently trading at a rate of 1.1706 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

He said: “Sterling ground out a fresh 6-month high against the euro on Monday, as markets continued to price in the likelihood of a Conservative majority at December’s general election.

“Today, with another barren economic calendar, focus will likely fall on this evening’s TV debate between Boris Johnson and Jeremy Corbyn, and the resulting impact on opinion polling.”

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According to the latest ICM voting intention polls The Tories have risen by three points to 42 percent.

This is their highest rating since September 2018.

Meanwhile, Labour has seen a boost of one point, taking them to 32 per cent.

In a blow to the Liberal Democrats, their support has fallen two percentage points to 13 percent.

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How will this affect travel money? 

Currency traders are keeping their eyes on the polls to help determine which way the rates will go.

While the outcome of a Conservative majority is largely unknown, it has, so far, had a positive effect for the GBP.

What does this mean for Britons jetting off on holiday?

One expert suggests making the most of the boosted rate by changing money now.

Rob Stross, CMO of WeSwap advised: “It goes without saying but when the pound is riding high, it’s a good time to buy your travel money.”

The Post Office is currently offering a rate of €1.1276 for over £400 and €1.1498 for over £1,000.

Ian Strafford-Taylor, CEO of FairFX added: “If you’re happy with the current rate on offer, buying your currency now is the only way to guarantee this rate for your future holiday.”

While not everyone holds the expertise of a currency trader, there are other ways holidaymakers can guarantee they get more bang for their buck when travelling.

Stross advises travellers to keep an eye on relevant news and updates that may affect the pound.

He told Express.co.uk: “When it comes to travel money, it can pay to be aware of any upcoming political events which could affect the pound’s value,” he explained.

“Last minute purchases, whether at airport bureaux or cruise ship currency exchanges, are always likely to lead to less bang for your buck as merchants are able to offer whatever exchange rate they like, knowing holidaymakers have no choice but to accept.”

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