Pound steadies against euro in exchange rate
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The pound to euro exchange rate is currently sitting above the 1.5 handle, with Rishi Sunak’s Budget announcement set to be unveiled on Wednesday. Though it started the week on a high, GBP has lost some of its strength overnight due to “changing dollar demand in the market”.
Despite this, experts remain positive about its position and growth so far this year.
The pound is trading at a rate of 1.1549 according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, currency expert Michael Caxton from Caxton FX explained: “Sterling lost ground against the common currency yesterday, though has marginally recovered overnight, gyrating in line with the ebb and flow of changing dollar demand in the market.
“There are little sterling-specific factors on the slate today, with focus increasingly moving to tomorrow’s Budget.”
Yet, while traders wait for further news on what measures Chancellor Rishi Sunak ill introduce during the loosening of lockdown restrictions, some experts remain positive about the GBP’s position as a whole in 2021.
“Sterling is still the best performing currency in 2021 despite a disappointing end to the month last week.
“The rapid UK vaccine rollout is the major catalyst for sterling’s success on the assumption that the economy will reopen and thus recover quicker than other major economies. Supporting this notion will be another highly accommodative UK Budget – due to be announced on Wednesday,” said George Vessey, UK currency strategist at Western Union Business Solutions.
“A multitude of economic data drops in throughout the week with final industry PMIs in the limelight, but the salient event is the UK Budget with expectations for the current support schemes to be extended until June, mirroring the roadmap of the reopening of the economy.
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“Additional fiscal support should underscore the constructive outlook for the UK economy and bullish bias for the pound. Tax hikes or even hints of large tax hikes in the future could undermine economic recovery hopes and limit further sterling upside though.”
He added: “[Yesterday] GBP/EUR reached €1.17 before also retreating back under the key €1.15 mark.”
Though leisure travel is off the cards for many, some Britons may still be eyeing up travel money exchanges.
Whether that is for essential travel, or simply hedging their bets for future holidays which may resume as soon as mid-May, the pound’s current position could be tempting.
However, one travel money expert has warned Britons to hang onto their money unless they absolutely need to exchange it.
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.”
For those who do need to swap their currency, The Post Office Travel Money continues to offer its services online with the option to click and collect.
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 €1.1151 for amounts of £400 or more, €.1313 for amounts of £500 or more and €1.1371 for amounts of £1,000 or more.
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