Britons heading abroad on summer holidays urged to act now to cash in on Euro troubles | Personal Finance | Finance

Holiday makers heading to Spain or other European destinations this year have been urged to cash in on a recent dip in the Euro.

The currency fell to an almost two-year low against the Pound, down to $1.0753 on Monday (June 10) after the shock results from the European Parliament elections.

President Emmanuel Macron called a snap election with the first round on June 30, after the National Rally party gained many seats in the European Parliament elections.

Simon Phillips, managing director at No1 Currency, told “UK travellers can now get more bang for their buck when they swap their sterling for the single currency.

“If you’re travelling to the Eurozone this week, you might just raise a glass to President Macron’s plight for its role in improving the exchange rate.

“Even if you’re not travelling for another month or two, it could be worth exchanging some of your money now to lock in a favourable exchange rate.

“Rates are constantly fluctuating, so pinpointing the perfect time to pick up your travel money is tricky – so the smart thing to do would be to exchange half your planned spending money now, and exchange the remainder closer to your departure date.

“Remember too that exchange rates can differ a lot between different travel money providers, so do shop around online for the most competitive quotes.”

He said there are good providers who will not charge commission and have many ways for a person to access the cash, such as click and collect from a high street location or with home delivery.

Professor Marco Mongiello, pro vice-chancellor of Business and Science at The University of Law, also encouraged travelers to take advantage of the current market trend.

He said: “Predicting the cost of our holidays in the continent will be a bit more difficult this year and predicting the effect of pricing on demand of British products in the EU market will be equally uncertain.

“The recommendation is to try and fix costs, contracts, booking etc. at fixed rates to lower uncertainty.”

Looking further ahead, he said that the Pound could grow after the General Election, on July 4. Mr Mongiello said: “Historically, currencies tend to appreciate in the wake of elections.

“This is because whichever way the elections go, their result bring some certainty (or less uncertainty) about the forthcoming political direction of the jurisdiction.

“This is true for both the UK and the EU elections, with the consequence that both Pound Sterling and Euro should gain strength from the elections in the UK and in the EU.

“Which of the two will gain more strength, will determine if the rate will become more or less favourable either way.

“They are both predicated to gain against the US Dollar, until the presidential elections across the pond, at which point the US Dollar may gain more strength than Pound Sterling and/or Euro.”

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