Travel Money Compared: Finding The Best Exchange Rate On Euros And US Dollars For Your Holiday

Holidaying abroad in 2016? It’s worth checking out the best exchange rates before booking those flights.

To give you an idea of how much the best exchange rates can fluctuate, take a look at the following Euro to US Dollar exchange rates: In February, EUR/USD fluctuated between the lows of 1.0837 and highs of 1.1362. Since the start of 2016 the British Pound has shed a lot of its value. This has been primarily the result of political uncertainty ahead of the European Union referendum1.

With little known as to the full impact of a British exit from the EU, whether positive or negative, investor confidence has dampened considerably. This can be seen for those buying euros, with the inter-bank pound to euro exchange rate dropping from a best conversion of 1.4409 in July 20152 to around 1.2815 in February. So what difference does this dramatic drop in the British Pound s value make to your Discount Holidays © holiday spending money?

Say you have 500 to exchange into Euro s to spend in Spain. At November s rate of 1.42 your 500 would equate to ‘ 710. At February s rate of 1.28 your 500 is only worth ‘ 640. Here are the latest inter-bank exchange rates (not travel money) for your reference:

On Thursday the Australian Dollar to British Pound exchange rate (AUD/GBP) converts at 0.5
3

The live inter-bank GBP-AUD spot rate is quoted as 2.001 today.

Today finds the pound to canadian dollar spot exchange rate priced at 1.968. The live inter-bank GBP-NZD spot rate is quoted as 2.159 today. The GBP to EUR exchange rate converts at 1.291 today.

The pound conversion rate (against us dollar) is quoted at 1.432 USD/GBP.

Please note: the FX rates above, updated 18th Feb 2016, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments4 compared to the banks.

Best Euro and Dollar Exchange Rates Behind Us? British Pound Outlook Negative on Political Uncertainty and Low Inflation.

Domestically you will probably enjoy ultra-accommodative interest rates and near-zero inflation, but this does not bode well for the value of the Pound. After a number of domestic data publications have shown that inflation outlook remains tepid and wage growth subdued, the Bank of England (BoE5) will be unlikely to hike the benchmark interest rate any time soon. This could keep the Pound on the back foot which will limit conversion rates.

Compare Pound to Euro Exchange Rate Discount Holidays © Holiday Money

As of 17th Febraury 2016, one of the best rates to buy your euros would surprisingly be via a high street shop.

500 will get you ‘ 626.90 provided by Debenhams6, although this is collection only. For those after a delivery service, the best pound to euro rate we could find was ‘ 623.60 including free delivery.

So when is the best time to take a Discount Holidays © holiday based on the best exchange rates achieved in 2016?

Given that the Pound trade weighting is predicted to remain low for a considerable period, there is no good time to take a Discount Holidays © holiday at present. However, there are a number of economic events on the horizon which could see the Pound fall further, so timing is key. Until more is known regarding the timing of the EU referendum there is no safe time to holiday.

Once the timing of the vote is known it would be prudent to await the result. If the UK votes to remain part of the EU it is likely to be met with a significant Sterling appreciation. It is always worth consulting an economic calendar before booking a holiday. If there is a Bank of England (BoE) policy meeting on the horizon it could be worth awaiting the conclusion.

Any speeches from BoE officials usually impacts the Pound, and data such as Gross Domestic Product or Consumer Prices usually provokes Sterling volatility.

US Discount Holidays © Holiday Planned? Pound to Dollar Exchange Rates have Also Weakened Considerably

Much like the pound to euro conversion, the pound to dollar travel money rate has weakened considerably over the past few months. In November the GBP/USD exchange rate was trending around 1.5289, but in February the GBP/USD conversion rate dropped to around 1.4290. Check our best dollar rate finder here7. Using the same example as above, your 500 spending money would equate to ‘ 760 at November s conversion, but just ‘ 710 at February s.

Whilst this may not seem dramatic, the gap widens considerably the more you wish to transfer. Those who have holidayed in America will know that 500 will not get you very far.

Using a Broker could save you a lot of money even at times when Pound Sterling exchange rates are weak.

Given that the British Pound is forecast to remain undervalued for some time to come, should you avoid taking a Discount Holidays © holiday abroad? No is the answer.

Whilst it would be more prudent to wait for the Pound to appreciate you may be waiting a long time, and there are only so many mini breaks in Cumbria one can withstand. So what should you do? Well it is common practise to use your bank or the post office to exchange your Pounds.

However, this is a mistake. If you use a dedicated, reputable currency broker to exchange funds you will be very likely to be given a far more favourable exchange rate than using your bank or the post office. What s more, most brokers require you to open an account with them which means that it is very easy to top up your spending money quickly should you find your cash running out. This avoids very expensive bank withdrawals.

The bottom line is that you should always consider exchange rates before getting your Discount Holidays © holiday spending money, and using a broker will be far more beneficial than a bank or the post office, and definitely better than the bureau de change.

FEATURED ADVERTISEMENT Looking for the Best Exchange Rates? Save Money on International Payments If you’re looking to make an international money transfer8, we recommend TorFX as our preferred currency provider.
Sending money overseas over 5000?

Free Transfers, No Fees, Bank-Beating Exchange Rates Request a quote9 today! OTHER ADVERTISEMENTS

References

  1. ^ European Union referendum (www.bbc.co.uk)
  2. ^ 1.4409 in July 2015 (www.exchangerates.org.uk)
  3. ^ 0.5 (www.exchangerates.org.uk)
  4. ^ up to 5% on international payments (www.exchangerates.org.uk)
  5. ^ BoE (www.bankofengland.co.uk)
  6. ^ Debenhams (finance.debenhams.com)
  7. ^ best dollar rate finder here (www.exchangerates.org.uk)
  8. ^ international money transfer (www.exchangerates.org.uk)
  9. ^ Request a quote (www.exchangerates.org.uk)

Leave a Reply

Your email address will not be published. Required fields are marked *

*