{"id":36220,"date":"2022-06-15T13:25:11","date_gmt":"2022-06-15T13:25:11","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/06\/15\/weak-pound-puts-the-squeeze-on-holiday-spending\/"},"modified":"2022-06-15T13:25:11","modified_gmt":"2022-06-15T13:25:11","slug":"weak-pound-puts-the-squeeze-on-holiday-spending","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/06\/15\/weak-pound-puts-the-squeeze-on-holiday-spending\/","title":{"rendered":"Weak pound puts the squeeze on holiday spending"},"content":{"rendered":"
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The weakness of the pound against the dollar and the euro means bad news for British holidaymakers this summer.<\/b><\/p>\n<\/div>\n

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Fears over the UK economy weighed on markets, sending the pound sterling below $1.20 on Tuesday, its lowest since the pandemic began, before partially recovering on Wednesday. <\/p>\n<\/div>\n

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The pound is hovering near 13-month lows against the euro.<\/p>\n<\/div>\n

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As a result, many Britons traveling abroad over the next few weeks will find their spending money doesn’t stretch that far.<\/p>\n<\/div>\n

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“The pound remains a very vulnerable currency,” said Jane Foley, head of foreign exchange strategy at Dutch bank Rabobank.<\/p>\n<\/div>\n

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  • Fears for UK economy mount as higher prices bite<\/li>\n
  • Warns UK of slowest growth of developed nations<\/li>\n
  • Why are prices rising so fast?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
    \n

    “A lot of this is related to growth fears,” she continued, noting that political uncertainty and a possible trade dispute with the European Union would likely increase investor concerns about the UK’s economic outlook.<\/p>\n<\/div>\n

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    Fears over the outlook for the UK economy grew after figures showed that April contracted for the second straight month, with firms feeling the impact of rising prices. <\/p>\n<\/div>\n

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    There is uncertainty over how quickly the Bank of England – which is expected to hike interest rates again on Thursday – can tighten monetary policy this year to tame inflation without further damaging the economy.<\/p>\n<\/div>\n

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    However, sterling’s weakness is also the result of a strong dollar, Ms Foley said, with rising interest rates making the US currency more attractive.<\/p>\n<\/div>\n

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    “A more aggressive pace of US interest rate hikes is certainly supportive of the dollar,” she said. The US Federal Reserve is expected to hike interest rates significantly after its monetary policy meeting on Wednesday in an attempt to stem rising inflation there.<\/p>\n<\/div>\n

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    \u201cAlso, the dollar has this safe haven appeal. So if we look at concerns about China or maybe the gas crisis in Europe, a lot of that creates an environment where people want to hold dollars.\u201d<\/p>\n<\/div>\n

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    Pound’s weakness will “add to the gloom” for British holidaymakers already facing travel disruptions, Ms Foley said.<\/p>\n<\/div>\n

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    After more than two years of Covid restrictions, many people are planning their first trips abroad, with peak summer holiday season and long school holidays on the horizon.<\/p>\n<\/div>\n

    \n
    \n
      \n
    • A summer of misery ahead for British travelers?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
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      But when they get there, they might find the pound in their pocket won’t go that far, Ms Foley warned.<\/p>\n<\/div>\n

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      “If you go to the euro zone or the United States, you can buy less,” she said.<\/p>\n<\/div>\n

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      “If we look at the dollar, it’s very strong, so vacationers going to the US will really see the weakness.”<\/p>\n<\/div>\n

      \n

      However, some vacationers will already have adjusted to this.<\/p>\n<\/div>\n

      \n

      “Sterling has been on the backfoot for several years so to some extent this weakness is already expected,” Ms Foley said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      The weakness of the pound against the dollar and the euro means bad news for British holidaymakers this summer. Fears over the UK economy weighed on markets, sending the pound sterling below $1.20 on Tuesday, its lowest since the pandemic began, before partially recovering on Wednesday. The pound is hovering near 13-month lows against the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-36220","post","type-post","status-publish","format-standard","hentry","category-business"],"yoast_head":"\nWeak pound puts the squeeze on holiday spending - Tahrir News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tahrir2day.com\/news\/2022\/06\/15\/weak-pound-puts-the-squeeze-on-holiday-spending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Weak pound puts the squeeze on holiday spending\" \/>\n<meta property=\"og:description\" content=\"The weakness of the pound against the dollar and the euro means bad news for British holidaymakers this summer. 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