The pound to euro exchange rate has recovered some of its losses, having clawed “its way back above the 1.15 mark.” It is likely to be a fairly steady day for the exchange rate, according to experts, as traders await the Federal Open Market Committee (FOMC) decision due on Wednesday.
The pound is currently trading at a rate of 1.505 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate with Express.co.uk.
He said: “Sterling managed to claw its way back above the €1.15 mark into the close yesterday, giving the bulls a modicum of hope that they can wrestle back control of proceedings, in spite of improving sentiment towards the common currency.
“Today’s calendar is quiet, with little of interest until tomorrow’s FOMC decision.”
However, one travel money expert has advised against switching travel money prematurely.
James Lynn, co-CEO and co-founder of travel card Currensea, said: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.”
Similarly, James Andrews, senior persona finance editor at money.co.uk said acting too early carries a major risk.
“International travel is currently prohibited by law until May 17 earliest,” explained Mr Andrews.
“Until the Government has confirmed that you will be allowed to travel, consider if you need to exchange travel money right away.”
Once travel is confirmed, preparation is key.
Mr Andrews says there are some simple ways to ensure holidaymakers get the most for their money.
“Do not exchange money at the airport, their rates are almost always less favourable than you can get in advance,” he told Express.co.uk.
“No matter how last minute your plans are, never be tempted to buy currency at the airport – the prices are notoriously harsh.
“If you do want to collect your money at the airport, ensure you order it well in advance to take advantage of better rates.”