Pound euro exchange rate ‘calmer’ and ‘firmer’ ahead of Rishi Sunak budget speech

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The pound to euro exchange rate has began the week on a much “calmer note”, following a “chaotic trade to end last week”. Sterling is currently trading above the 1.15 handle and is heading towards Chancellor Rishi Sunak’s Wednesday Budget announcement on a “firmer” foot according to one expert.

The pound is currently trading at a rate of 1.1577 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.

He said: “After somewhat chaotic trade to end last week, the pound finds itself on both calmer and firmer footing this morning, once more trading above the 1.15 handle, as attention begins to shift to Wednesday’s Budget.

“Today’s manufacturing PMI data shouldn’t bother the market too much, with attention more focused on leaks ahead of Chancellor Sunak’s aforementioned speech.”

Rishi Sunak has suggested his Wednesday Budget “is preparing a Budget that provides support for people” as Covid lockdown rules are eased.

So, what does this mean for anybody buying euros at this time?

While travel is currently off the cards for leisure holidays, some people may still need to jet off abroad for “essential purposes” as set out by the Government.

The current Government advice states: “Under current UK COVID-19 restrictions, you must stay at home.

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“You must not travel, including abroad, unless you have a legally permitted reason to do so.

“It is illegal to travel abroad for holidays and other leisure purposes.”

Furthermore, under current lockdown rules many high street travel money retailers remain closed.

Luckily, some of them are offering online click and collect services, including the Post Office Travel Money.

On its website, The Post Office Travel Money says customers can “order euros online – collect in two hours from your nearest branch or get next-day delivery.

The Post Office Travel Money is currently offering rates of €1.1097 for amounts of £400 or more, €1.1259 for amounts of £500 or more and €1.1316 for amounts of £1,000 or more.

With Prime Minister Boris Johnson suggesting some international holidays could be given the go ahead from May 17, some Britons might be considering buying travel money while the rates are favourable.

However, one expert has warned this is not necessarily a good idea.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”

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