In less than a month’s time, we’ll go to the polls to choose the next Government - but before you vote, you might want to get your holiday money in order.
When it comes to changing money, we’ve been benefiting from a strong pound, .
But Edward Knox, an analyst from the foreign exchange Caxton FX, said there could be “serious jitters” in the pound’s value as the election grows near.
No one knows who will form the next Government - even the polls haven’t suggested a clear winner.
The strength of the pound depends partly on the actions of the Government. So until they know what to expect, investors will be nervous. And last time they got worried, just before the Scottish Referendum, .
Knox said: “If you are heading on holiday in the next few months it is a good option to purchase your currency now.
“The lead up to the election will be characterised by increasing anxiety and uncertainty.
“Even after the result, the potential for an unstable government following such a close race could continue to impact sterling in the days and weeks after until an effective solution is found.”
Even if you don’t want to change huge amounts of cash right now, you can take advantage of the cheap euro by booking hotels ahead of time.
Knox believes the strength of the pound depends on what the next Government looks like. Here’s his predictions:
The pound may get off to a strong start, but if there is an EU referendum it is likely to seriously weaken again.
The pound could weaken, as there are concerns about Labour’s spending, despite the fact the party says its plans are “fully funded”.
The pound could weaken, as investors remember the uncertainty around the Scottish Referendum.
The pound could stay strong, as the Coalition is viewed as economically successful by many investors.