Millions of British tourists heading to European destinations have been urged to “buy Euros now”. The warning comes as the Pound is likely to fall even further, the financial experts have revealed.
Currently, the Pound is under pressure against the Euro after a hawkish stance from the European Central Bank around interest rates and a potential US-EU trade deal. According to the experts, it is likely to weaken more after falling to its lowest level since 2023. Tony Redondo, Founder of Cosmos Currency Exchange, said: “For Brits travelling to Europe soon, buy now, as it looks more than likely that the Pound may weaken further.
“The Pound has weakened to its lowest level since November 2023 against the Euro due to the ECB’s hawkishness on interest rates and optimism that a trade deal will be struck with the US before Trump’s 30 percent tariffs are due to take effect on 1 August.
“Do not change money at the airport or ferry terminal, but use a travel or pre-pay card as the rates are better. If you regularly visit the continent, consider opening up a Euro-denominated bank account with a debit card as bank account to bank account exchange rates are superior to travel money rates.”
Prem Raja, Head of Trading Floor at Currencies 4 You, said now is the time to act. He said: “With GBP/EUR struggling to hold above 1.15, now is the time to act. Sterling is under pressure, and the outlook isn’t encouraging. The UK economy continues to show signs of stagnation, while political uncertainty ahead of the Autumn Budget could weigh further on the Pound.
“Meanwhile, the Euro has gained strength on the back of a more hawkish ECB and optimism around a potential US-EU trade deal. For Brits heading to Europe soon, it’s wise to buy your Euros sooner rather than later, as waiting could cost you.
“To make your money go further, avoid airport exchanges, use specialist currency providers and consider locking in rates in advance.”
Harry Mills, director at Oku Markets, said the fall was down to reduced investor confidence as the nation looks ahead to the Autumn Budget. He added: “We anticipate a dreary end to the summer for sterling, and also for Brits heading across the channel.
“It had looked like the pound was finding a floor around €1.15, but repeated failed attempts to lift above €1.1550 saw sterling trade sideways for the past fortnight.
“Thursday saw the pound’s first close below €1.15 since November 2023. Soft UK economic data and the looming Autumn Budget are reducing investor confidence in the UK; consequently, the pound is devaluing.
“Meanwhile, the European Central Bank held rates steady on Thursday as expected, sticking with its “wait-and-watch” tone.”