Latest news with #CosmosCurrencyExchange
Daily Mail
11 hours ago
- Business
- Daily Mail
Why you should get your holiday euros now - but hold off buying US dollars amid the Trump tariff turmoil
Tourists risk losing hundreds off their spending money by picking the wrong time to buy currency. Exchange rates continually see-saw, but this year the volatility is especially heightened thanks to sweeping US trade policies that affect markets around the world. Currency experts here reveal when they think you should buy to get the best deals. Get euros now If you're jetting off to Europe in the next month, buy euros as soon as possible, says Tony Redondo, founder of Cosmos Currency Exchange. The euro has been strengthening against the pound in recent weeks – meaning each £1 won't go so far – and there is likely to be more to come. It has benefited from US tariff policy, which has made investors nervous about buying dollars. Money has instead flooded into European investments, which have been seen as a safer option in an uncertain climate. That has pushed up the value of the euro – not only against the dollar, but sterling as well. The pound could weaken further against the euro due to a poor economic outlook in the UK. Last week there was a sharp drop in the pound's value following unexpectedly dire official data, which revealed the economy shrank by 0.3 pc in April. This could force the Bank of England to cut rates as soon as August, which could spell further bad news for our currency. Mr Redondo says: 'Until last week, the view in the markets was for the Bank of England to cut interest rates maybe one more time in 2025. This week has changed that, with two cuts now forecast.' Hold off dollars Heading to Disney World during the school holidays? You're in luck as you can currently get $41 more than you could last June for the same £500. Simon Phillips, at travel money firm No 1 Currency, explains that while the UK's weak economy is contributing to the pound's underperformance against the euro, the pound's strength against the US dollar is being driven by President Trump. On Friday the dollar sank to its lowest in three years against a basket of currencies as his trade policy continues to cause disruption and uncertainty. Plus, there are growing expectations the Federal Reserve will cut US interest rates, which will trigger an outflow of investment as individuals pull their money in search of higher returns. Prem Raja, of Currencies 4 You, suggests holding off buying dollars until nearer your time of travel – especially as Mr Trump has floated the possibility of an extension to the 90-day tariff pause. He says: 'If we keep getting tariff extensions and volatility, the pound will perform well against the dollar.' Analysts at Goldman Sachs agree. They believe the dollar's weakness will continue due to uncertainty from policies such as the tariffs – while both the euro and pound are set to benefit. Best of both because no one knows for certain what will happen to rates, one way to exchange your currency is to 'hedge your bets', Mr Phillips says. 'We can't work out what's going to happen, particularly with President Trump in charge. So buy some currency now and buy some later,' he says. 'You'll never get all your money at the best rate, but you won't get the worst, either.' Where to buy bureaus offer different rates so shop around. Think about your travel money before arriving at the airport – passengers often pay a premium rate at the gates. Also, don't rely on cards all the time when abroad, especially after the power outage in Spain and Portugal which left households unable to pay for items on a card machine. Plus, cash is still king in many parts of Europe. Think about a mix of both cash and card. If using a debit or credit card, choose one with no foreign transaction fees. Options include Starling and First Direct. Pre-paid cards are also an option. This way you can lock in an exchange rate ahead of time if you want certainty, unlike with a regular credit or debit card. Options include the Wise card, which costs £7 to order. You can read our full list of our best picks for free spending abroad here.
Scotsman
2 days ago
- Business
- Scotsman
Petrol price alert: How the Israel-Iran conflict will impact the motorist and UK economy
'That's the end of the cheapest petrol prices in the UK for four years' – Tony Redondo, Cosmos Currency Exchange Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Motorists have been warned of an imminent hike in prices at the pump as the conflict between Israel and Iran intensifies. Experts also point to the knock-on effect that rising oil prices could have on the wider UK economy amid concerns that inflation may spike again. It comes as the Bank of England this week announces its latest decision on interest rates with a hold widely anticipated. Advertisement Hide Ad Advertisement Hide Ad Following a 7 per cent surge on Friday, the price of a barrel of Brent crude edged higher on Monday, at around $74, which could have a direct effect on petrol prices in the UK. That would spark the end of a period of falling prices for motorists, with a litre of unleaded currently selling for below 130p on many forecourts - the cheapest petrol prices in Britain for four years. UK motorists have seen some of the lowest prices for petrol and diesel in four years. Oil price hikes have followed intensive Israeli aerial attacks that have extended targets beyond military installations to hit oil refineries and government buildings. In response, the Iranian Revolutionary Guard has struck a hard line, vowing that further rounds of strikes would be 'more forceful, severe, precise and destructive than previous ones'. Tony Redondo, founder at Cosmos Currency Exchange, warned of an end to the relative downturn of the price of fuel at the pump for Brits. He said: 'Global oil prices are up, hitting their highest price in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies. Advertisement Hide Ad Advertisement Hide Ad 'That's the end of the cheapest petrol prices in the UK for four years. Gold has been up to a one-month high as the markets swing to risk aversion mode. Stock markets will sell off. These are all predictable knee-jerk reactions.' Policymakers meet at the Bank of England this week to decide on the next move on interest rates. Prem Raja, head of trading floor at Currencies 4 You, added: 'Markets are reacting with a classic risk-off tone. Investors are seeking safe havens, and oil prices are rising with supply disruptions feared, potentially ending the UK's run of low petrol prices.' Ironically, the strong oil price has been helping to support the wider stock market, with the UK's benchmark FTSE-100 index proving remarkably resilient amid gains for energy companies and defence contractors. Shares in Footsie heavyweights BP and Shell were bolstered by the higher oil price. Russ Mould, investment director at AJ Bell, said the latest Middle East conflict remained a 'fluid situation' with the potential for markets to experience sudden jolts if the tensions escalate further. Advertisement Hide Ad Advertisement Hide Ad 'Global oil prices jumped last week after Israel attacked Iran, raising concerns about major disruptions to supply,' he noted. 'Despite a weekend of violence between the two countries, investors showed no signs of panicking, judging by movements in financial markets on Monday. 'The gold price is often a measure of investor sentiment, going up when people are worried and going down when they're optimistic. The precious metal slipped 0.6 per cent to $3,432 per ounce which indicates that investors remain alert to ongoing geopolitical tensions but they're not reaching for their tin hats.' Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, said there were worries that the attacks from Iran and Israel could ignite a wider conflict, destabilising the Middle East and affecting oil supplies. 'There's an intense focus on the Strait of Hormuz, described as an 'oil artery' in the region,' she added. 'Around a fifth of global oil supplies flow through this narrow channel and an escalation could disrupt distribution Advertisement Hide Ad Advertisement Hide Ad 'Israel has already been targeting Iran's energy facilities, including Iran's South Pars gas field. Although gas prices have also edged up slightly, the biggest moves have been seen with crude prices which are up around 12 per cent since hostilities erupted and could head higher if the Strait is targeted. 'The worsening situation is set to be the focus of the G7 meeting of leaders of wealthy nations in Alberta, Canada. While hopes that Trump will sign more deals seem to be keeping trade optimism a bit higher, many countries remain in a queue and the cost to the global economy is mounting.' Interest rates UK interest rates are predicted to stay at 4.25 per cent on Thursday at the latest meeting of the central bank's monetary policy committee (MPC) after inflation jumped in April. The MPC has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25 per cent. This has been possible while the rate of inflation has been steadily falling from the high of 11.1 per cent in October 2022, at the peak of the cost-of-living crisis. Advertisement Hide Ad Advertisement Hide Ad However, inflation jumped to its highest level for more than a year in April, according to the latest figures from the Office for National Statistics (ONS). Consumer prices index (CPI) inflation hit 3.5 per cent in April, up from 2.6 per cent in March. Since releasing the data, the ONS said that an error in vehicle tax data collected meant the April figure should have been 3.4 per cent. Riz Malik, director at R3 Wealth, fears the escalating conflict in the Middle East could affect the UK's economy.
