Travel money: Post Office introduce multi-currency pre-paid card
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The pound to euro exchange rate has hit exciting highs this morning. However GBP could become “vulnerable” very soon, experts have warned. This follows “thinner” trading volumes in the USA.
Therefore “a pullback in the immediate term” could beset sterling.
The pound is currently trading at 1.1447 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling starts the week at fresh nine-month highs against the common currency,” said Brown.
“Though the move has little by way of new fundamental rhyme or reason about it.
“Nevertheless, given the closure of US desks today for Presidents’ Day, trading volumes are likely to be thinner than usual.
“Perhaps [this will leave] the pair vulnerable to something of a pullback in the immediate term.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.1014 over £400, €1.1174 for over £500, or €1.1232 for over £1,000.
Of course, with travel currently off the cards, most Britons aren’t jetting off abroad any time soon.
But with the exchange rate so favourable, is it worth buying holiday money now?
James Lynn, co-CEO and co-founder of travel debit card provider Currensea, says not.
“It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable,” he told Express.co.uk.
“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 over purchasing or exchanging and holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”
He continued: “On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.
“Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.
“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.
“The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”
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