The pound trades modestly against the euro after the markets value a greater chance of the Bank of England reducing rates. The news follows “mediocre” inflation results, however, with few important political decisions this week, it is believed that the pound will continue to trample on the water.
It is a positive turn in what began as a slow week, with the pound sterling down against the euro and other major currencies on Monday.
Since then, he had seen a smaller than 0.04 percent increase to a more comfortable position.
The pound is currently trading against the euro at a rate of 1.1699 according to Bloomberg at the time of publication.
Michael Brown, senior market analyst at Caxton FX, told Express.co.uk: “The British pound hit a moderately softer tone against the single currency yesterday, as the markets valued a higher probability of a rate cut of interest for mediocre inflation figures, pointing to the slower pace of price increases in more than three years last December.
READ MORE: Brexit Travel: Experts reveal what will happen with travel insurance [INSIGHT]
It is unknown what effect this will have on the pound.
As always, major political changes are likely to affect the position of the pound, with Brexit only a few days away. The United Kingdom has not yet reached an agreement with the EU, although Prime Minister Boris Johnson has maintained a positive outlook in recent days.
Tourists could be celebrating favorable results if an agreement is reached on time.
Meanwhile, unexpected political changes can have a negative impact on your vacation money.
Keeping an eye on the political news may be the key to avoiding major falls.
Rob Stross, WeSwap marketing director, said: “When it comes to travel money, with the peaks and valleys of the pound in the light of Brexit, it is difficult to plan when to buy your travel money.”
He advised: “To try to get ahead of fluctuations and even make the most of them, there are several frequency alert systems that you can use. Our Smart Swap function is an example of this. “