Pound saw ‘worst day of the year’ yesterday after enjoying huge boost over Easter weekend

Pound to euro exchange rate fluctuates amid vaccine row

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The pound reached above the 1.18 handle against the euro on Easter Monday. However, yesterday, it slid more than one percent while the euro gained ground.

Sterling enjoyed much success over the Easter weekend, reaching above the 1.18 mark against the euro on the bank holiday Monday.

This was due to the UK’s vaccination rollout and “unlocking” of the country’s roadmap set to continue as planned.

However, yesterday morning, the pound stood below the 1.18 handle and by today it has slid again.

Yesterday morning, the pound traded at 1.1773 against the euro, according to Bloomberg, while today sterling stands at 1.1617, at the time of writing.

Michael Brown, currency expert at Caxton FX spoke exclusively to Express.co.uk, giving his insight on today’s pound to euro exchange rate.

He said: “The pound had its worst day of the year against the common currency yesterday, sliding more than one percent, as the common currency gained ground amid decreasing pessimism about the bloc’s Covid vaccine rollout.”

Although sterling has dropped since the beginning of the week, Mr Brown said it could “defend” its place above the 1.16 handle.

The currency expert explained: “Sterling has, however, managed to build a base of support around 1.1650, a level which will be important for the bulls to defend over the day ahead.”

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Despite sterling having decreased over the last couple of days, Mr Brown was yesterday optimistic as the UK’s roadmap out of lockdown is to continue next week as planned.

Speaking to Express.co.uk yesterday, he said: “Sterling briefly traded above the €1.18 handle on Easter Monday, though remains marginally south of this level this morning, as European traders prepare to return.

“The move comes amid favourable UK tailwinds with the ‘unlocking’ roadmap set to continue as planned, and as the eurozone continues to grapple with a third wave of infections.”

Although sterling stood at a lower rate yesterday than on Monday, it was still higher than last week’s level.

Last Thursday, Mr Brown explained that the UK’s successful vaccination rollout had an impact on the rate.

He said: “Sterling consolidated recent gains north of €1.17 yesterday, continuing to benefit from tailwinds including favourable month-end flows, and the UK’s strong vaccination drive; in contrast to Europe, which is going backwards, with France re-entering lockdown.”

So what does all this mean for your travel money?

Currently, foreign travel is off the cards for Britons, but the ban may lift from May 17.

The Prime Minister said on Monday “We set out our roadmap and we’re sticking to it. We want to stress we see nothing in the present data which shows we need to deviate from that.”

However, Boris Johnson explained that he couldn’t rule out the ban on travel, saying: “We are hopeful we can get going from May 17 but I do not wish to give hostages to fortune or to underestimate the difficulties we are seeing in some of the countries people are wanting to go to.”

Due to the unpredictability of the coronavirus, travel experts have warned Britons to be “cautious” before exchanging travel money.

James Andres, senior personal finance editor at Money.co.uk previously told Express.co.uk: “Although countries have said they will be opening their doors to UK visitors, consumers must be cautious before exchanging money at this stage.

“International travel is currently prohibited by law until May 17 earliest.

“Until the government has confirmed that you will be allowed to travel, consider if you need to exchange travel money right now.”

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