The pound to euro exchange rate struggled as the week began thanks to growing concerns around the rapidly spreading coronavirus. With UK-EU talks on pause until next month, its largely the epidemic that is leading the way for the markets.
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Coronavirus, which was first detected in December, has now spread across the globe, causing mass panic and sending shudders through certain global economies.
With the virus impacting how people travel and spend economically, investors are acting with hesitancy. However, the pound did see a modest boost of 0.11 percent overnight.
The pound is currently trading at a rate of 1.1920 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX, said: “Sterling struggled on Monday amid broad risk aversion in global markets, as investors continued to monitor the rapidly spreading coronavirus.
Today, the calendar is barren, hence the pound should be in for a quiet day.”
One of the areas impacted the most by coronavirus has been the travel and tourism sector.
A number of airlines, including British Airways, have cancelled flights to and from China, meanwhile reducing journeys to Hong Kong.
Furthermore, hotels within the region have also seen rapidly falling numbers.
The hospitality sector has seen the number of tourists arriving drop to a daily average of 3,000 compared with 20,000 for the same month last year.
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hile coronavirus is currently the main focus of market traders, political developments are set to fire up again soon.
In recent weeks it has largely been talks between Boris Johnson and EU leaders that have lead the way for the pound, but with discussions on hold until March, the fate of the pound lies elsewhere.
Its no surprise, then, that holidaymakers could be concerned about when to change their money.
Though there is no sure way to know which direction the pound will move, travellers can take a guess by staying up to date with political and global news.
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When talks startup between the PM and world leaders regarding trade deals, it is likely the pound will see some rapid developments.
The Post Office is currently offering a rate of €1.1471 for £400 or more, or €1.1699 for £1,000 or more.
Planning is a traveller’s best friend when it comes to getting the best rates.
Switching money prior to arriving at the airport is also key to avoiding unexpected or additional charges.
Ian Strafford-Taylor, CEO of FairFX, explains: “It’s no secret that airport exchange rates don’t offer the best value for holidaymakers as they end up paying a hefty price for ‘convenience’.
“Travel money can often be left until the last minute and falls off the priority holiday checklist, but as we’ve found time and time again in our research, leaving it until you get to the airport could end up costing you.
“Planning in advance whenever possible will pay substantially.
“You can set up alerts to buy your holiday money when rates are in your favour, or lock-in exchange rates by using a prepaid currency card.
“Whatever you do, don’t leave it until the last minute.”
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