The pound to euro exchange rate has gained ground on its seventh day in a row, despite growing uncertainty from COVID-19. The pound has even managed to go above the 1.14 handle for the first time in weeks.
- Pound to euro exchange rate: GBP soars with first quarter boost
As worldwide cases hit more than one million yesterday, the coronavirus remains at the forefront of investor’s minds.
The unprecedented boost comes as “investors continue to monitor the coronavirus pandemic and its economic implications”.
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However, despite the exchange rate’s welcome high the deadly virus will be the “primary driver of risk appetite at present”.
The pound is currently trading at 1.1423 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, told Express.co.uk: “Sterling rallied to a three-week high against the common currency on Thursday, extending its recent run of gains into a 7th straight day – equalling the pound’s best stretch in over four years.
“The gains came as investors continue to monitor the coronavirus pandemic and its economic implications.
“Today, the pandemic will remain front and centre, with the virus being the primary driver of risk appetite at present.”
George Vessey, UK Currency Strategist from Western Union Business Solutions said that GBP was in fact at its highest level since the beginning of March.
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“Sterling shrugged off dismal manufacturing data, rising over one percent against the Euro, stretching towards €1.14, and its highest level since March 12.
“The 200-week moving average lies just under this level and is likely to pose resistance.
“The data shouldn’t be ignored though as it is just the start of what is expected to be a rough month and quarter of economic data.
“The spread of coronavirus has caused business confidence to slump to its lowest level on record and led to the steepest increase in vendor lead times in 28 years due to long delays in transport and raw material shortages.
“Job losses in the manufacturing sector were the most severe since July 2009.
“It wasn’t all doom and gloom though – sales in food and pharmaceutical sectors soared throughout March as a result of a huge increase in demand.
“The introduction of social distancing measures to try to limit the spread of the virus in the UK mean that the degree of disruption to activity is likely to rise in the second quarter.
“Reminder – the UK government has announced tens of billions of pounds worth of stimulus and £330 billion of state loan guarantees to help businesses try and weather the storm.
“The Bank of England has also stepped up its bond-buying and cut interest rates to an all-time low of 0.1 percent.”
The UK currently has more than 33,000 cases of coronavirus and over 2,900 deaths.
Today, the UK will open its first coronavirus hospital in London, NHS Nightingale.
The hospital will become the world’s largest critical care unit and will be opened by Prince Charles later today.
Two more of the Nightingale hospitals will be opened in Bristol and Harrogate which will provide 1,500 extra beds for patients with COVID-19.
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