The pound to euro exchange rate had a positive weekend despite the ongoing coronavirus pandemic, which recently left the Prime Minister hospitalised in intensive care. Initially, news of the Prime Minister’s admittance led to GBP falling against both the euro and dollar.
- Pound to euro exchange rate: GBP remains steady amid COVID-19
However, since Mr Johnson’s departure from hospital, the exchange rate has remained on an uptick.
Today, GBP continues to remain above the 1.14 mark in a positive move for the nation.
The welcome rise comes after the euro suffered following a lack of agreement from eurogroup finance ministers regarding a common fiscal response to coronavirus last week.
The pound is currently trading at 1.1423 against the euro, according to Bloomberg at the time of writing.
The pound to euro exchange rate finished last week 0.4 percent higher.
That was the third straight week that the pound surged against the euro.
Markets across Europe are closed today due to the Easter bank holiday meaning that today is likely to be a quiet day for the market.
But this does mean that more focus will be put on coronavirus statistics coming out of the UK and Europe.
Italy’s MEP sheds light on Germany’s ‘diabolical EU plan’ [INSIGHT]
FTSE 100 LIVE: EU forced to agree trillion-euro bailout plan [UPDATE]
Eurozone in crisis: EU blasted for failure to act on coronavirus [ANALYSIS]
Saturday saw the number of deaths in the UK pass 10,000 in a shocking day for the country.
However, there is more pressure than ever before on the UK Government to announce its exit strategy for the coronavirus pandemic.
Once this is announced, investors will have more of an idea as to where the UK economy will go.
It is expected that the economy will experience a rapid downturn.
John Vandesquille, Travel & Tourism Analyst at GlobalData explained that the pound’s movement could impact on other countries too.
He said: “Furthermore, the weak currency, coupled with the predicted slow resumption of air travel and the ‘cabin fever’ effect caused by the isolation period, is likely to boost domestic travel within the British Isles which, in turn, would help the British hospitality industry kick-start its recovery.
“On the other hand, a weak pound is certainly bad news for some popular European destinations, such as Spain.
“Indeed, as one of the most affected countries by COVID-19, Spain will see tourism figures, one of its main industries, drop significantly in 2020, starting with British tourists, who will probably opt for more affordable destinations such as the Maghreb or Turkey.”
Chancellor of the Exchequer Rishi Sunak said last week that the Government needs to “find the right balance” between coronavirus treatment and the economy.
A source close to Mr Sunak said that the Chancellor and Health Secretary Matt Hancock are reportedly “taking a holistic approach in trying to find the right balance” between the ongoing coronavirus health crisis and the economic impact of the lockdown, according to The Telegraph.
One Tory MP warned of a “tipping point” which could see the benefits of the lockdown be outweighed by the economy.
The MP said: “The tipping point is when there is no money in the economy to pay for it.”
On Thursday, a COBRA meeting will review the current lockdown in the UK.
Source: Read Full Article