Scramble for Euros, as Brexit camp gains ground

The battle over the EU referendum has never been closer. One recent poll puts the Leave campaign ahead - with 48% wanting to Remain, 49% wanting to Leave and 3% undecided: it would take a brave soul to call the final result at this stage.

The vote could have a profound effect on the economy, our lives and our livelihood for generations to come, but more to the point, if Britain leaves the EU, it could spell disaster for the cost of a European summer holiday.

So should you snap up your Euros while you can?

Plenty of people have done so. HiFX report the number of holidaymakers buying Euros this week is currently up 35% on the same time last week.

Is it a good idea?

They're hardly getting a blisteringly good deal, because the Euro is currently worth around 79.5p - up from about 70p roughly a year ago.

In fact, things got considerably more expensive around the end of May, when it started rising from around 76p. This has been attributed to the fact that this was the point when the Remain campaign started losing ground, and the markets started getting concerned about Brexit.

The problem is that if Britain was to leave Europe, then the exchange rate would get a great deal worse - at least in the short term. Chris Towner, chief economist at HiFX, said: "We know that in the event of a 'Brexit', we're likely to see a significant weakening for the pound, with many warning that a Leave vote could trigger a 15 to 20 per cent fall in the value of the pound."

On the other hand, if Britain was to vote Remain, then as Towner points out: "The pound may recover some – or all – of the losses it has made in recent months."

What should you do?

The answer then comes down to your opinion - do you think the Leave campaign will win, or the Remain camp?

All sorts of different organisations have brought out their own polls of how people are likely to vote, and they have produced an array of results. One offering food for thought was a TNS poll of people who definitely planned to vote. It found that 47% backed Brexit, 40% Remain and 13% were undecided. It has added fuel to speculation that support for the Leave campaign is growing.

Towner himself believes: "The outlook is gearing stronger towards a victory for the Leave camp, so those preparing to buy their holiday money for the summer need to weigh up the potential risks."

You are then left with three possibilities:

1) You can buy all your Euros for the summer now, so you at least know where you stand and avoid the worst case scenario. If you think Britain will leave the EU, you're likely to seriously consider this option.

2) You can take a chance if you believe Britain will stay in Europe, and wait to buy your Euros after the referendum. At this stage, this requires the courage of your convictions.

3) You can hedge your bets by buying some of your holiday money now - or by pre-loading a pre-paid currency card. That way you avoid the risk of getting all your cash at the worst possible price - without locking into the current disappointing exchange rates.

With such widespread uncertainty, the third option would seem to make the most sense. But what do you think? Who will win and have you bought your Euros? Let us know in the comments.