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Sterling rally: why you should exchange currency today

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Written by: Paloma Kubiak
20/06/2016
Holidaymakers are being urged to buy their currency today after the pound had its biggest one-day rally in seven years. 

Sterling was up 2% against the dollar at $1.464 this morning marking its biggest one day move since 2009 after the latest opinion polls suggested a win for the Remain camp on Thursday.

It was also up 1.8% against the euro at €1.29.

Foreign exchange specialist Caxton FX said while we’re likely to see extreme volatility this week as the attention is focused on the referendum vote, holidaymakers should think about changing their currency today.

Nicholas Laser-Ebisch, a currency analyst at the firm, said: “People who need to change their holiday money should think about doing so today. Sterling will continue to be volatile as the referendum approaches, and there’s no telling what level the pound will be at over the next couple of days.

“This movement is a good chance to capitalise on a fairly good rate for euros and dollars, and means you will get more for your pound then you would have last week.”

For example, loading £300 onto a currency card at the start of June would have bought you €395, whereas at the beginning of April it would have only bought €370.

Brits miss out on extra euros

Separate research by Caxton FX found sterling volatility has left Brits nervous about buying holiday money and resulted in many missing out on the best rates.

It found people were buying their holiday money in smaller amounts this year but were buying more frequently.

Analysis from customer data showed that the average amount of euros loaded onto a prepaid card in a single transaction has fallen by 10% since January when compared with the same period in 2015.

However, the overall amount loaded has actually increased, as people are making more loads in 2016, suggesting that “people are nervous about what is happening to the euro in the run up to the referendum and are holding off buying too much in one go.”

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