The pound to euro exchange rate has been going through a turbulent time since the referendum in 2016.
Last summer the exchange rate hovered around €1.14 to the pound and this year it is has remained even lower at around the €1.12 mark.
Now , the exchange rate has fallen to a fresh 11 month low of €1.10203 to the pound amid fears of a no-deal Brexit.
During her tour of Africa, Prime Minister Theresa May said a no-deal Brexit “wouldn’t be end of the world”.
May said the UK can still make a success of Brexit if it tumbles out of the European Union without a deal.
However, sterling seems to have suffered as a result and the current exchange rate is just €1.11702 to the pound (at time of writing).
When should I buy my euros?
If you’re planning a holiday to Europe this summer you might be wondering if the exchange rate is going to improve or ultimately get worse.
Writing on his website Moneysavingexpert.com, Martin Lewis discusses whether Brits should buy their holiday money now or wait.
How to get the best exchange rate: 7 top tips
“The problem is there is no law of exchange rate gravity, just because a currency has dropped, it does not have to bounce back,” said Martin.
“Markets move based on expectations, so if interest rates go up, but not as much as was thought, that could make the exchange rate drop.”
“Yet many other factors affect the pound’s strength – general economics, speculation, political stability and more,” he added.
It’s difficult for anyone to predict how the exchange rate will be affected in the coming months.
However, if you’re unsure when to buy your euros the money guru suggests buying half now and half later.
“Buy roughly half what you need at today’s best rate – whether in cash or on a prepaid card (see how to get today’s best rate), and then for the rest just rely on the best rate on the day you spend,” he said.
Caxton FX Analysis, Alexandra Russell-Oliver, also suggests hedging your bets by buying some now and some later.
Talking exclusively to the Daily Star Online she said: “For anyone uncertain about whether to buy now or wait, one option is to hedge your bets, purchasing half of your currency requirement now, and half later.
“That way, you will benefit from the higher exchange rate on at least half of your currency.”
Source: Read Full Article