Pound to euro exchange rate drops after significant rise
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The pound to euro exchange rate has seen little “headway” in the last 24 hours, currently hovering around the 1.14 mark. It comes following a series of surges in the last week thanks to the speedy roll-out of the vaccine across the UK and EU.
The pound is currently trading at a rate of 1.1394 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX shared his exclusive insight with Express.co.uk into the current exchange rate.
“Sterling remains just beneath the €1.14 handle this morning, having failed to make any further headway to the upside yesterday as a result of the broadly stronger euro seen during both European and US trade,” he said.
“Today’s focus will be on remarks from BoE Governor Bailey, and ECB President Lagarde.”
Though new growth has yet to be achieved, other experts predict further boosts could be on the horizon.
George Vessey, UK currency strategist at Western Business Solutions said: “Despite poor economic data from the Eurozone recently and downbeat economic forecasts for the bloc, Euro selling pressure has eased up and GBP/EUR hovers around the €1.14 mark. Nevertheless, the bullish setup on the charts suggests €1.15 could be the next short-term target.
“After trading in a relatively tight trading range between €1.09 and €1.13 for several months, GBP/EUR has staged a breakout higher and scored seven weekly rises out of the last eight weeks – highlighting the bullish momentum of this currency pair.
“The vaccination divergence between the UK and EU is helping the pound climb higher against the Euro. We are witnessing poor data from both the UK and Eurozone and traders seem to be overlooking this, focussed more on future recovery prospects.
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“For example, data yesterday showed that German industrial output stagnated in December against the backdrop of extended lockout measures, with a full-year contraction of 8.5 percent, but the Euro was unfazed.
“The fact this data did not provide a reason for resets in the equity, bond and currency markets indicates investors have left past-looking economic releases behind and seem to be looking ahead to the recovery phase.”
Travel is likely to be off the cards for many Britons, with summer holiday hopes diminishing, after the news tightened travel restrictions would be brought in.
These measures include hotel quarantine for arrivals from “high risk” destinations, enhanced testing for international arrivals and higher fines for those who break rules.
As a result, many airlines have been forced to cancel package holidays and flights.
Most recently, Jet2 made the decision to axe all flights and holidays up until April 14.
Though people may not be exchanging travel money to go abroad, would-be holidaymakers might have unused currency they need to switch back.
The Post Office Travel Money continues to offer an online travel money exchange service, with the option to click and collect in-store.
The Post Office is currently offering a rate of €1.0992 for amounts of £400 or more, €1.1152 for amounts of £500 or more and €1.1209 for amounts of £1,000 or more.
“Savvy consumers should shop around before they change currency back to make sure they’re getting the best offer available and not losing too much money in the process,” CEO of Equals Ian Strafford-Taylor told Express.co.uk.
However, he added those who know certain they will travel at some point in the future may want to “keep hold of their currency until their next trip and use it then.
“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,” said the expert.
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