Current events are causing all sorts of problems, according to a currency exchange expert
Brits heading abroad this summer are being given a new warning.
Towards the close of last week, Sterling dropped to a three-week low against the Euro and a five-week low against the US Dollar, spelling trouble for Britons travelling overseas. The decline, according to a foreign exchange expert, stems from two key factors.
Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, explained: “Firstly, markets are worried that Britain is heading towards a period of political instability. Secondly, they are worried about how the UK economy will cope with an expected rise in inflation.
“Though inflation fell to 2.8% today, it is expected to rise, potentially sharply, in the months ahead as the impact of rising oil prices due to the conflict in the Middle East hits the UK economy in full. If markets believe higher inflation makes UK gilts a not–so-safe bet, that will apply further downward pressure on Sterling.”
Tony noted the weakened Pound was hammering holidaymakers venturing abroad, as their money was now “plummeting” in value against currencies like the Euro and Dollar – a situation that “could get worse in the weeks and months ahead”.
However, he highlighted that a struggling domestic economy and Sterling’s persistent fragility was prompting an increasing number of businesses to fundamentally reconsider how and where they sell their services.
Tony added: “If they’re anything, the UK’s businesses are resilient and proving they can adapt. During 2026 to date, we’ve seen a sharp rise in UK businesses moving away from difficult domestic conditions and looking for customers overseas.
“Rather than having all their eggs in one UK economic basket, a growing percentage of UK firms are now marketing and selling their products and services online to customers in Europe, America, Canada, Australia and even Singapore and Hong Kong.
“If there’s one silver lining to the weak UK economy, it’s that many traditionally domestic UK small businesses have become international ones, as they cast their nets ever wider in search of customers and profit.
“The ability to ply your trade internationally has never been easier and it can massively boost a company’s bottom line.”
