While America is in turmoil following the election of Donald Trump, with the dollar plummeting against other major currencies, the pound is bouncing back.
Sterling now stands at its highest value since what was dubbed a “flash crash” in October when the pounds value plummeted with no real explanation.
Now, however, with the US dollar getting lower and lower following the election of Mr Trump and ongoing riots, the pound has jumped.
It is now sitting above $1.26 or the first time since October 7. The positive change has come about as Mr Trump’s election took the focus away from Britain’s upcoming exit from Europe.
Slightly better than expected statistics on Britain’s construction output also played their part in raising the pound’s value.
The increase in Sterling value means that one Euro is now worth 86.1p, so many travel experts are saying now is time to purchase holiday currency.
Stock market analysts said they were expecting riots and protests in America to hit the financial markets.
Jasper Lawler, a market analyst at CMC Markets UK, said: “The British pound as a top FX gainer this week bucks the trend of Brexit-induced weakness seen over the past few months.
“There’s an element of simply a shift in focus behind this. The phenomenon of Donald Trump as US President-elect has put Brexit on the back-burner, allowing the pound to creep higher.”
Travel and currency experts are now advising that now could be a could time to buy holiday money for anyone traveling to Europe or America, with the best rates in more than a month.
Currency provider FairFx is also reporting that the pound has strengthened against a number of other currencies, including the Polish Zloty, the Hungarian Forint and the Icelandic Krona as well as against the South African Rand and the Brazilian Real.
Alexandra Russell-Oliver, an analyst at Caxton FX said, however, that there might still be room for the pound to strengthen even further, which would be of benefit to travellers.
However, she added: “There are still potential risks to the pound from Brexit uncertainty over the coming months, and the pound’s rally could face pressure if economic data disappoint expectations.”
Ian Strafford-Taylor at FairFX said the key to getting the best deal was to plan ahead as much as possible.
He advised people heading to America in the next few weeks to keep an eye on rates over the next few days before locking them in when they are at their most favourable.