Pound drops against the dollar and euro due to weak retail sales data
Retail sales slumped in June, causing the value of sterling to dip below $1.30 against the dollar
THE pound fell to a 10-month low against the dollar after UK retail sales failed to rise as much as expected.
The Office for National Statistics said sales slumped by 0.5 per cent between May and June - well below expectations of a 0.2 per cent rise.
Sterling dipped against the dollar to $1.2995 after the data was released - its weakest level in 10 months.
It was also down by 0.28 per cent against the euro at €1.119.
Jacob Deppe, head of trading at the online trading platform, Infinox, said: "Yes, the World Cup and heatwave could conceivably have kept people out of the shops, but equally they could have contributed to a feel good factor on the high street.
"The pound dived faster than Neymar on June's weak retail number. It crashed through the $1.30 floor to hit its lowest level against the Dollar for 10 months.
"Just as football didn't come home after all, it seems people didn't leave home, either."
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
Ongoing political turmoil related to Britain leaving the EU has also dragged the pound down, according to analysts.
The pound tends to jump or drop on any rhetoric around the nature of Brexit and any data providing insight into the state of the economy.
Stephen Gallo, European head of FX strategy at BMO Financial Group said: “At 1.30, sterling is nowhere near to being fully priced for a worst-case political scenario, but participation in the pound is unlikely to climb much until that worst-case scenario looks a lot more certain.”
The rate has remained relatively stable for the past two months following a more volatile period earlier in 2018.
The pound gained 10 per cent from its low of $1.2040 in January 2017, but still remains 11 per cent below its level before the EU referendum.
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But Brits travelling abroad this summer can save money on foreign currency with a specialist currency card, like the ones provided by .
You top these cards up online using pounds, and they work like a normal debit card when you're abroad - but without the fees.
Holidaymakers can also use comparison tools like MoneySavingExpert’s TravelMoneyMax to compare, pick-up and pre-order rates.
ALTERNATIVES TO HOLIDAY CASH
BEFORE you go on holiday, you can make sure you’re prepared to get the best rate.
- A specialist credit card, such as the Creation Everyday or Halifax Clarity Mastercard, are a good way to secure the best rates and avoid paying fees.
- You MUST remember to pay these off in full every month.
- If you want to lock in a rate then you could get a pre-paid card from the likes of FairFX, Travelex or the Post Office.
- Beware of fees, as some charge you for loading them with money, spending and withdrawing cash.
- MoneySavingExpert.com recommends Mastercard’s Revolut, Weswap and Monzo - but check the terms and conditions of each card before applying
But whatever you do, don't buy or sell currency at the bureau in the airport as the rates are really poor and you'll get a bad deal.
SUN, SEA... AND SAVING MONEY How to get the best deal on holiday money and currency deals
Hannah Maundrell, editor-in-chief of, said: "Trying to predict what will happen to the exchange rate is impossible.
"However, you never know which way currency will go so if you have a holiday booked perhaps buying half now and half closer the time means you won’t feel so bitter if it doesn’t go in your favour."
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