Posted by Allison on 11 June 2009, 11:05
It has been an interesting week with regard to the currency exchange rates. We have had the elections taking place across much of Europe, and it would appear that they have affected some of the currencies in place there too.
But many Brits will still be wondering whether taking a holiday in Europe is a good idea yet or not. After all, the figures we have been seeing on our currency converter with regard to the exchange rate between the pound and the Euro haven’t been good of late. The question is whether they have improved in our favour, or whether the elections made any difference.
This news report from AFP is indicative of many that we have seen across the web lately. You can read it here. Clearly things have been better for the Euro, as it seems to have fallen by the wayside a bit recently. But is the pound strong enough to give us a good exchange rate for taking a holiday somewhere on the continent?
Let’s find out. The pound started the month quite strongly against the Euro, with an exchange rate of 1.1520 to kick off with. Considering there was a time a few short weeks ago when we were almost at parity with the European single currency, this actually isn’t too bad at all.
Things improved a bit more the following day as well, with the exchange rate being pushed up to 1.1558. It wasn’t a huge difference but it was enough to be going in the right direction. And it continued the following day as well. By the close of play on Wednesday the exchange rate was up to 1.1631.
So where would we go from here? The European elections were looming, and an event that major does tend to have an effect on what happens in the currency markets. And as it happened that would turn out to be just the case here too.
By the time Thursday had come to an end the pound was bagging less in the way of Euros than it had been just twenty four hours earlier. It finished the day on 1.1508, but with more voting still to come we were still on rocky territory.
That was probably why we finished the week on 1.1373 – rather lower than we had started it on. So is this the right time to be thinking about hopping across the Channel for a quick break in Europe?
Many people are still avoiding it in the hope that the exchange rates will improve a lot more in the months to come. It is hard to say if or when that might happen, but thanks to the recession holidays are still the last thing on many people’s minds at the moment. The best guess would be to wait things out and hope that the pound can grab more Euros than it would at present.
Let’s not forget also that last year we were grabbing figures like 1.2959 for an exchange rate. So we are still a long way off that, and we are likely to remain that way for quite some time.
So for now perhaps it is best to take a short break in the UK rather than heading abroad to Europe. Let’s wait things out and hope the pound improves against the Euro soon.