Buy holiday money now or after the election?

By | Category: Travel tips & opinions

You will probably have seen that the pound has risen both against the euro and the US dollar in the last few days.

purse with money
Should you buy your spending money now?

For those planning on a Christmas break the issue is whether you buy your currency now or wait and get a better deal after the election is over.

Since the beginning of September the pound has risen in value by about 10% against the euro and is now at a two-year high. But will it go higher?

Against the US dollar it has risen by about eleven cents compared to early September and is as high as it has been since May this year.

At present thinking seems to be that the Conservatives will win the election and that has boosted the value of sterling. If they do win then you might expect the pound to strengthen still further as the money markets will probably take the view that uncertainty is removed. In this case the advice would probably be to wait until the election result comes through and then buy your holiday money.

It seems as though the money markets are following the political news. If that is the case what happens if the polls narrow before election day? Will the pound go down? Logic suggests it will

But what if the Conservatives don’t win or there is a hung parliament?

If you take that view then you should probably buy your money bow because the pound will decline if there is uncertainty as to which party will govern. If Labour were to win, the thinking is that there would be at the very least a short term dip in the value of the pound. So you pays your penny and takes your choice

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