The pound to euro exchange rate looks to be continuing its “miserable week” as GBP continued to fall against the common currency, experts have said. GBP’s slump was impacted by cross-party Brexit talks collapsing on Friday. This made it the tenth consecutive day sterling has dropped against the euro. This week will see the European Parliament election which is likely to put further pressure on Prime Minister Theresa May’s position, warned experts.
The pound is currently trading at €1.142 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.
“A miserable week for the pound concluded with the collapse of cross-party Brexit talks on Friday, exerting further downward pressure on an already weak sterling,” Brown said.
“The pound fell for a 10th consecutive day against the euro, the longest losing streak since the inception of the single currency, having fallen more than three per cent in the last two weeks.
Brown added: “Looking ahead to this week, focus will remain on political developments in Westminster, with this Thursday’s European Parliament elections likely to result in significant losses for the two major political parties, further intensifying pressure on the Prime Minister’s position.
“Economic data will also be eyed, with CPI inflation the main focus. Markets expect CPI to pick up to 2.2 per cent, above the Bank of England’s target for the first time since December, though the release is unlikely to alter the BoE’s policy outlook with their hands tied due to Brexit-related uncertainties.”
Holidaymakers are being encouraged to sell their spare euros and make the most of the current exchange rate.
Paul Brewer, CEO of Currency Online Group, said: “Despite the Brexit deadlock and the weak market, now is actually a very good time to sell any spare currency that you have.
“The downward pressure on the pound means that you’ll get a much better rate when selling in exchange for GBP.
“At the moment we’re advising all clients to offload euros before any possible resolution to the Brexit negotiations starts to give the pound a bit of a bounce”.
He added: “We’re all looking at Brexit and any possible sign that a shift might occur either way.
“The pound hasn’t reached its pre-Brexit peak since the referendum and whilst it’s unlikely to get back to that level any time soon, a breakthrough in the Brexit process is sure to get it moving upwards again.”
For those looking to save money on holidays amid Brexit uncertainty, travellers could consider the nifty trick of hotel switching, which has long been used by price-savvy holidaymakers who manually search and pair hotels to cut their costs.
Hotels set their prices using nightly rates and charges go up when availability is low.
For example, a holidaymaker who books a 10-night stay in Rome for £2000 assumes the room rate is £200 per night. However, it might be £140 for the first four nights, rising to £240 for the last six nights due to increased local demand.
By being cunning and changing hotels part way through a trip, holidaymakers can avoid paying these extra fees.
David Ferreira, co-founder of Nightly.Travel, told Express.co.uk: “Value-seeking travellers can win big through hotel switching. As well as taking advantage of the best deals across two different properties to save money, they can experience different sides of the same city or grab an upgrade by moving to a five-star hotel for the same price as staying in their four-star hotel.
“Although many Britons are still choosing to travel to European destinations like Spain or Greece, Brexit has negatively impacted how far the British Pound can go in many places across Europe, so hotel switching can help create savings and get travellers more for their money.”