Mirror scaremongering over best currency exchange rates?

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This week saw more scaremongering over the value of the pound and when you can get the best currency exchange rates.

http://www.mirror.co.uk/money/general-election-2015-buy-holiday-5527496

What is being presented as journalism, to me, appears to be an extended advert for Caxton FX who are unsurprisingly a currency supplier. Let me show you what has been happening to the Euro exchange rate over the last three months (90 days).

Chart showing the Euro exchange rates over the past 90 days.

The Euro rate has been climbing fairly steadily for the past three weeks.

I agree we are not at the highest rate of the year but the rate is climbing fairly steadily and has been for the past three weeks which means you will get more spending money for your Pound now not less and the rate certainly is not ‘plumeting’.

This past week we have seen more and more of the election manifestoes published and these are all making the future post-election less uncertain and that is what the markets do not like AND far more importantly what happens in the UK is tiny compared to what is happening within the Eurozone.

Ovbiously it is still important to compare the best exchange rates, just because the rate is improving does not mean that everyone is offering the best deal and yes the holiday rates are not as good as the international transfers but the chart above is the exchange rates for holiday money and the prices actually quoted to customers not some unachievable interbank rate.

I just noticed the captions on the images used by the Mirror, they are [in order]…

  1. Could they all fall down? [shown against an image of stacked Pound coins]
  2. Uncertain results can make currencies weaker. [shown against a picture of anti-austerity protestors outside the Royal Courts of Justice]
  3. Cash in now for some extra drinks in the sun. [shown against a beach scene]
  4. The Scottish referendum sent the pound plummeting. [shown against a stylised map of the UK]

This is almost Pavlovian in its attempt to manipulate the reader. Three dollops of fear with a reward for good behaviour in the form of free alcohol. We all know what a great example drunk British tourists are…

If you are looking to buy your travel money please do the sensible thing and watch the rates for a few days before you buy. If the rate is dropping then buy sooner rather than later but if it is climbing then wait a bit. As long as you leave enough time to make sure it is delivered safely before you travel, 4 or 5 days before departure at least I think, you should not let this sort of scaremongering push you into throwing money away. No one knows if the rate is going to go up or down in the future. The currency markets are all about speculation and that is what the traders do speculate, gamble and take risks on prices moving one way or another.

Do not risk your holiday money.

Posted by Peter Rudin-Burgess

Peter Rudin-Burgess

Peter is one of the founding partners for both Compare Holiday Money and Currency Buy Back. He regularly blogs on financial matters and writes content for a number of blogs in the travel industry.

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