Pound to euro exchange rate trading on ‘thin volumes’ with ‘little impetus’ to budge

Heathrow Airport: Passengers arrive as travel restrictions ease

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The pound performed well at the beginning of last week, with it experiencing its best day of the year. Since then, it has remained rangebound with it trading in the 1.16 region against the euro.

It is trading at a rate of 1.1646 against the euro at the time of writing, according to Bloomberg.

This is slightly up from yesterday, where it was trading at 1.1613. 

Speaking to Express.co.uk, currency expert at Carton FX, Michael Brown explained that the market continues to trade on “thin volumes”.

He explained: “It was a quiet start to the week for the cross yesterday, which remains rather rangebound in the low-€1.16s, with the market continuing to trade on thin volumes, with little impetus to budge out of this tight range. 

“This morning’s UK labour market data may spark some volatility, though given the stale and skewed nature of the release, it is more likely to be ignored out of hand.”

Yesterday, the expert said: “Sterling continues to trade in the low-€1.16s as the new week gets underway, with the cross having taken on a rather rangebound nature over the last few days.

“The start of the week sees a quiet calendar, though a full ‘MOT’ on the UK economy is due as the week progresses, something that could potentially be a source of volatility in FX.”

At the beginning of last week, the pound hit new highs for 2021.

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At the time, Michael said: “Sterling had its best day against the euro since last December yesterday, rallying to three week highs.

“This is as the market reacted positively to the weekend’s election results, and the perceived lower risks of a second Scottish independence referendum.”

The ban on international travel lifted yesterday in the country which meant that holidaymakers could once again return to some popular tourist destinations.

“Green” list countries include Gibraltar, Iceland, Singapore, Australia and New Zealand. 

This means travellers do not have to quarantine on arrival back into the UK.

What does this mean for travel money?

James Lynn, CEO and co-founder of Currensea explained: “While it’s excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers.

“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.

“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.”

In other news, British Airways launched £40 PCR tests yesterday to help drive down the price of Covid-19 testing before travel.

BA’s CEO Sean Doyle said: “We are working hard to drive down the costs, so we just launched a £40 PCR test today.

“We are working with the Government and are pushing them to drive down the costs of testing.”

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