Pound increases against the euro in exchange rate
The pound to euro exchange rate saw success last week, with sterling managing to hold its own against the euro. It begins this week above the €1.12 mark, a position described as “crucial” for the GBP.
The pound is currently trading at a rate of 1.1227 against the euro according to Bloomberg at the time of writing.
Currency expert Michael Brown of Caxton FX spoke with Express.co.uk to share his exclusive insight into what is in store for the exchange rate.
“Sterling ended the week above the crucial €1.12 mark, benefitting from a weaker euro, handing the bulls some degree of control as this week gets underway,” he said.
“It may, however, be something of a slow start to the week, with US markets closed today for a Federal holiday.
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“Nevertheless, a busy economic calendar awaits over the next five days, including retail sales, inflation, and December’s Flash PMI surveys.”
For Britons who were hoping to jet off in the coming weeks, a ramp up in coronavirus restrictions means many may be having to exchange holiday money back into pounds
A national lockdown, with no clear end in sight, continues to be in place across the UK.
As part of this, Britons are warned they should not be travelling internationally for “non-essential” purposes.
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Last week, Prime Minister Boris Johnson took things further by closing all travel corridors as concerns mounted over a variety of new “strains” of COVID-19 found abroad.
As a result, many airlines have axed itineraries, including British Airways, Jet2, Ryanair and easyJet.
Despite this, financial experts warn Britons not to race to swap back their money.
“If you have got hold of foreign currency in cash, I’d recommend keeping it in a drawer if you can afford to do so,” said James Lynn, co-CEO and co-founder of travel debit card Currensea.
“The exchange rate has already hit the pound badly because of the third lockdown and if you go on a holiday later in the year you’ll be hit again converting your money back into the currency you need.
“This could mean you lose 10 to 20 percent of the value due to fees.”
Despite the bans, there are some Britons who are allowed to travel.
According to the Government, international travel may still go ahead if it is for a list of “essential” reasons such as for work, to return home or for compassionate reasons.
The FCDO advice continues to apply for all “essential” travel.
This includes avoiding destinations where travel warnings are in place, and following testing and quarantine rules on arrival back into the UK.
“If you intend to travel to England, Scotland, or Wales from abroad, including UK nationals returning home from travel abroad, you must provide evidence of a negative COVID-19 test result taken up to 3 days before departure,” states the FCDO.
“if you do not comply (and you do not have a valid exemption) your airline or carrier may refuse you boarding and/or you may be fined on arrival.”
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