The pound to euro exchange rate has soared to a four-week high this week despite the ongoing global lockdown in a bid to fight the spread of coronavirus. Recent economic fallout as a result of these drastic measures has had a grip on the pound’s stance in most markets, however, following the Easter weekend, the GBP rose to new strength.
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The pound is currently trading at a rate of 1.1473 against the euro according to Bloomberg at the time of writing.
Michael Brown, Currency Expert at Caxton FX, spoke to Express.co.uk to offer his exclusive insight.
He said: “Sterling trades at a four-week high against the common currency this morning, as the pound benefits from a broad-based improvement in risk appetite as investors continue to monitor the ongoing coronavirus pandemic.
“This week, risk appetite will remain the primary driver of the pound, with the currency set to further advance should sentiment remain buoyed by continued glimmers of optimism around the virus.”
Though a large majority of the news surrounding the devastating virus is understandably largely negative, experts suggest there is some optimism on the horizon which is helping to strengthen the pound.
Market traders may feel some bravery to begin to invest in areas they may have avoided in recent weeks.
Now, the pound enters into its fourth consecutive week surging against the euro.
Further rises were offered to sterling after Prime Minister Boris Johnson emerged from hospital after receiving intense treatment for a case of coronavirus.
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However, given the unprecedented nature of coronavirus, nothing can be predicted about how things will pan out in the coming weeks.
At present Europe is still considered the epicentre of the virus, although cases in North America are also beginning to dramatically rise.
There are currently more than 159,000 confirmed cases in Italy, 136,000 in France, 170,000 in Spain and 130,000 in Germany
In the UK confirmed cases have surpassed 88,000.
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Meanwhile, in the US there are more than 587,000 confirmed cases and the death rate has risen to 23,644.
Borders worldwide continue to be in lockdown, meanwhile, the Foreign and Commonwealth Office (FCO) maintains its warning that Britons should avoid all but essential travel indefinitely.
With holiday companies and airlines cancelling journeys, many would-be travellers may now be left with unwanted travel money.
Is now the time to switch those euros back to pounds?
Though rates may be more favourable now than in recent weeks, customers may struggle to find the best deals on offer by travel money exchange services.
This is because many bureau de changes are now closing their doors amid the pandemic.
“If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then,” advises Ian Strafford-Taylor, CEO of Equals (formerly known as FairFX).
“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether.”
One prepaid currency card that can still be used within the UK is the Post Office Travel Money Card. Any cash stored on the card can be switched to pounds and spent in the same way as a debit or credit card.
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