Yesterday happy holidaymaker looked on as the pound to euro exchange rate rose throughout the day.
After staring the day at €1.17027 to the pound, it climbed to €1.17804 by the end of the day.
The pound’s increase came after the Office for National Statistics (ONS) reported that the UK inflation rate remained at 2.3% in March – the highest level since September 2013.
And today the pound is set to climb even higher, after the ONS revealed UK unemployment rate remained unchanged.
The current exchange rate is €1.17765 to the pound (at tome of writing) but it seems to be continuing on an uphill trend.
“The better than expected print saw sterling rise moderately”
Jake Trask, FX Research Director at OFX
The pound has already hit a 12-day high, but experts predict is could push higher, breaking the €1.18 mark today.
Jake Trask, FX Research Director at OFX, said: “There was good news for the High Street this morning as UK Wage Growth data beat forecasts, easing the pressure on consumers hit by rising inflation since last year’s EU referendum.
“The closely followed Average Earnings Index showed an annual rate of wage growth of 2.3%, matching yesterday’s CPI reading from the ONS.”
However, the finance expert says the outlook for the rest of the year is “far from rosy”, so it might be best to cash in your holiday money now.
He said: “The better than expected print saw sterling rise moderately against the dollar and euro, however the outlook is far from rosy for the rest of the year.
“Inflation is expected to push towards 3% over the next few months as sterling’s huge depreciation since the Brexit vote begins to be felt in full.”
“It is very unlikely wages will be able to keep pace, leading to a squeeze in the spending power of UK shoppers”.