Pound to euro exchange rate: Sterling to FALL further against EUR this week say experts

THE POUND could lose more ground against the euro this week, as data reveals retail sales numbers and wage growth have plummeted.

Deutsche Bank analyst thinks Pound will drop lower to $1.05

Sterling could fall further against the euro, as economic data released last week was not as positive as expected.

Retails sales numbers plummeted to -0.3 per cent on Friday 17 February – 1.2 per cent lower than had been predicted.

In addition wage growth fell from 2.7 per cent to 2.6 per cent.

“If inflation continues to rise due to oil prices, items are going to become more expensive which in turn means retail sales numbers will continue to fall as wage growth dwindles,”  Dayle Littlejohn, Senior Executive Dealer at Foreign Currency Direct, told Poundsterlingforecast.com.

Pounds and euro signGETTY

Pound to euro exchange rate: Sterling may lose further ground

If inflation continues to rise due to oil prices, items are going to become more expensive

“All in all this would be another reason why the pound would continue to lose value and something the Bank of England will need to monitor closely.”

One event to watch out for this week which could affect the pound to euro rate is the release of the Gross Domestic Product numbers on Wednesday 22 February at 9.30am. 

Any Brexit-related news from the House of Lords could also have an impact.

This comes after Express.co.uk reported on the holiday destinations around the world where your sterling will soar.

The fluctuating UK currency has cast doubt over where Brits should take a break. 

Last week the pound to US dollar exchange rate took a dip after UK inflation figures failed to meet forecasts. 

But it’s not all doom and gloom - the amount of Britons taking holidays since June’s Brexit referendum has skyrocketed. 

In the three months to November, 18.5 million people from the UK headed abroad, representing a 10 per cent increase compared to 2015. 

Express.co.uk spoke to Chief Market Analyst at Xtrade Paul Sirani who revealed three places where Brits can squeeze the most value out of 2017 vacations. 

According to Mr Sirani, Greece is the best choice for a budget holiday. He said: “The cheap prices on the islands of Paros or Skiathos could prove an attraction, or even Santorini for those in wanting somewhere more lavish.”

Another beneficial choice is France, which offers the best value for Brits in the first half of 2017. Mr Sirani added: “Your pound should go a long way this spring, especially during the Easter period when there are plenty of political events that could see the single currency weaken further.”

Outside of Europe, Southeast Asia is the most cost-effective option for idyllic holidays. Mr Sirani said: “For those holidaymakers that want to travel further afield, South-east Asia always offers value. Cambodia and Vietnam are both cheap and still largely unspoiled despite their ever-growing popularity.”

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