Pound to euro exchange rate sees slight upturn following drop
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The pound to euro exchange rate has remained “rangebound” in recent weeks hovering around the 1.15 mark. According to one expert, this is due to a lack of major events, as well as traders pricing “bad news” into the common currency some time ago.
The pound is currently trading at a rate of 1.1504 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.
“Sterling-euro continues to hover just north of the 1.15 handle, and do very little else,” he said.
“Today’s busy calendar of eurozone data – including first-quarter GDP – is unlikely to move the needle much, given the degree of ‘bad news’ that was priced into the common currency long ago.
“As such, we could be looking at another quiet trading day before the bank holiday weekend arrives.”
However, according to George Vessey, UK currency strategist at Western Business Solutions, there is some good news for the GBP.
“Sterling benefits from better economic recovery prospects after the pick-up in the COVID-19 vaccine roll-out programme overcoming some initial hiccups in the supply of the essential vaccine,” he explained.
“Meanwhile, there was a sigh of relief for GBP after getting a final OK from the EU over Brexit. The now ratified deal provides the framework for London’s new relationship with the 27-member union despite persisting tensions between both parties.
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“The resulting Northern Ireland Protocol leaves Northern Ireland within the EU’s trading sphere, avoiding a hard border on the island of Ireland but infuriating pro-British unionists by undermining the region’s place in the United Kingdom.
“The fallout from within the DUP has led Arlene Foster to step down as Northern Ireland’s First Minister at the end of June.”
The Government has confirmed it is pushing ahead with plans for the next stage of relaxing lockdown.
On May 17 some international travel is due to resume under the “traffic light” system.
On Tuesday, Secretary of State for Transport Grant Shapps also confirmed the Government is working on a vaccine passport-style app.
While holidaymakers may be keen to plan their next international jaunt, one travel money expert has warned Britons to proceed with caution.
James Lynn, co-CEO and co-founder of Currensea explained: “It is beginning to look more and more likely that international travel will be back on the cards this Summer with the announcements this week that Spain will be welcoming tourists back in June and the NHS app will be used as a vaccine passport for travel.
“While we await a more formal announcement from the Prime Minister around which countries we will be able to travel to (and when) it may be tempting for many to rush to book this year’s holiday and take out holiday money now in preparation.”
He warned: “However, while it is tempting to take out foreign currency in anticipation of a holiday I would advise against this.
“Market movements are often more marginal in reality than they appear. “Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
“Once we are allowed to travel again, this will hopefully signify the end of the COVID bump and I anticipate this will mean the pound will improve significantly.”
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