The moment you hop on a plane to Europe or beyond, your cash is redundant and any UK credit cards in your wallet will charge you for each transaction made abroad. Without a supply of foreign currency and a travel-friendly credit card, you won’t get very far. The problem is that exchange rates don’t stay the same from one minute to the next, so if you are not careful, you could easily lose out when swapping Sterling for Euros, US dollars, or any other currency you need for a trip abroad.
The Impact of Currency Fluctuations
The impact of currency fluctuations is far reaching. Trillions of dollars are traded through the forex market on a daily basis. The USD makes up the bulk of transactions, but GBP and Euros are also popular currencies. Forex market activity combined with major economic events plays a significant part in how much you pay for your holiday money, so it pays to be alive to what’s going on in the world. Consequently, it is for these reasons that using trading tools such as a forex trading app to manage trades can be highly beneficial.
Brexit is a good example of just how volatile the forex market can be. When the Brexit vote came in, the pound dropped to a 31-year low. It has since recovered, but with the value of the pound still very depressed, UK travellers are getting a raw deal on their holiday money.
Get Clued Up on Forex
Anyone who invests money in the forex market via FX Pro will be alive to the day-to-day fluctuations of major currency pairs, but if you know nothing about forex investing, now is a good time to get clued up on currency fluctuations. Future political events are likely to have a big effect on the value of the pound, so use this knowledge to help you make the right decision about when to buy your holiday currency.
The pound is lower against the Euro than it was prior to the referendum vote, but future election results in Europe could further strengthen the Euro and knock the pound down even further.
Shop Around for the Best Rates
To obtain the best currency rates, it is essential that you shop around. Use an internet travel currency search engine and read the small print before you buy. Pay attention to rate trends and decide whether the current rate is likely to rise or fall. If possible, buy your currency from a travel bureau that lets you cancel the order for free before you collect. That way, if rates do rise, you won’t lose out.
Lastly, never buy foreign currency from the airport – the exchange rates are atrocious!