If you’re holidaying in Europe over Easter you’re in luck as the pound is the strongest it’s been against the euro in weeks.
The exchange rate has been hovering around the €1.178 mark all day and the pound has been slowing gaining, since the Office for National Statistics revealed the UK’s wage growth report.
The pound hit a 12-day high earlier this morning, but experts predicted it would reach €1.18 – and they seem to be spot on.
The current exchange rate is sitting at €1.17899 to the pound – the highest level in a month. But investors and holidaymakers alike are watching eagerly to see if it pushes over the €1.18 threshold.
So, should you rush out and buy your holiday money now?
Speaking exclusively to Daily Star Online, Jake Trask, FX Research Director at OFX, answered some pressing exchange rate questions.
1. How high do you predict the exchange rate to reach today?
They will more than likely run into some resistance around the 1.18 handle.
2. Where do you predict it will be by the end of the week?
We are probably at the top end of its range for the week. Easter weekend is usually pretty quiet on the FX markets.
3. Should people rush out and buy their holiday money now?
It’s not a bad time, given Brexit worries that continue to hang over sterling. We may see some further improvement in the next month however depending on how the French election plays out.
4. Is the exchange rate predicted to get even better?
Against the euro it is possible. There are a lot of uncertainties re: the French election. We may get above 1.20 should Marine Le Pen poll well in the first round.
5. What IS a good exchange rate?
Fair value for sterling would be higher than we are now, however quantifying a “good exchange rate” is hard. If there hadn’t been the Brexit vote we would no doubt be somewhere in the 1.30’s against the euro, maybe as high as 1.40.
6. What is the strongest the pound has been in the last year?
In the last 12 months the highest has been around 1.32, but this was before the Brexit vote.
While the pound is currently strong against major currencies like the euro, it’s important to get the best exchange rate possible.
Holidaymakers must keep a close eye on the pound if they want to get the best currency deals.
“Holiday goers should be increasingly savvy when buying foreign currency”
Simon Phillips, Retail Director at No1 Currency
Speaking to the Daily Star Online, Retail Director at No1 Currency, Simon Phillips said:
“Regardless of the rate, holiday goers should be increasingly savvy when buying foreign currency.
“While the exchange rate remains an important factor when choosing a holiday, it’s not the only one.
“When changing your sterling, always make sure to compare currency rates online to get the best possible deal.”
Here are three tops tips on getting the best exchange rate:
1. Don’t buy currency at the airpot
Airport suppliers have some of the worst rates in the country. Leaving it until the last minute could mean you’re literally throwing money away.
If you are really short on time, even ordering your currency from the airport in advance could mean you get a better rate.
2. Beware of the double exchange rate dupe.
If you let the seller in a shop or restaurant convert the price back into pounds, they will choose their own exchange rate and you’re more likely to be on the less favourable end of the deal.
3. Avoid using the wrong debit cards abroad
“While the right card is absolutely the best way to spend abroad, the wrong one is absolutely the worst way,” says Martin Lewis of Money Saving Expert.
Some debit cards have a spending fee go £1-£1.50. So every time you put a transaction through you get charged.
Some of the worst offenders are the Halifax Debit Card, Lloyds Debit Card and TSB Debit Card, according to Martin.