Pound to euro exchange rate climbs amidst vaccine success
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The pound has seen a significant boost against the euro over the last week as the vaccine effort continues to drive ahead in the UK. Though there has been little change for sterling in the last few days, one expert has said it is “hard to imagine” “significant downside” for sterling despite a lack of economic developments in the coming days.
The pound is currently trading at a rate of 1.1421 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 rate.
“Sterling continues to hold above the 1.14 handle, however a recent rally in the common currency has prevented the cross from making significant further moves to the upside,” he said.
“Today, no notable economic releases are due, leaving the market to either meander along, or to focus on the pandemic once more; either way, significant downside for sterling is hard to imagine.”
However, a boost for the euro has held the pound back from further growth, according to George Vessey, UK currency strategist at Western Business Solutions added: “The hope of more stimulus though is leading the risk-on mood as well as the improving vaccination rollout across Europe, which has helped EUR/USD extend higher and thus limiting the rise in GBP/EUR.”
So what does this mean for holidays and travel money?
Though the exchange rate is favourable at present, given the current national lockdown, holidays remain on hold for UK residents.
Yesterday, Secretary of State for Transport Grant Shapps hammered home the fact holidays under the current rules are “illegal”.
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What’s more, he said the future was “too uncertain” to know whether holidays would go ahead by the summer.
However, people travelling for “essential” reasons are able to travel to some destinations.
Furthermore, many would-be holidaymakers may be looking to switch their foreign currency back to pounds if their plans have now been cancelled.
Post Office Travel is currently offering a rate of €1.0976 over £400, €1.1135 for over £500, or €1.1099 for over £1.1192.
Despite the favourable rates, one foreign currency expert suggests now may not be the time to switch euros back into pounds.
James Lynn, co-CEO and co-founder of Currensea told Express.co.uk: “It may be tempting to change back leftover travel money, or even 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 over purchasing or exchanging and 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.
“On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.”
Lynn continued: “Multi-currency travel cards that enable you to spend in the local currency (in Currensea’s case directly from your own bank account, cutting out international charges) will always be the best way to save money.
“This will enable you to spend directly with local services while on holiday using the ‘real-rate’ and only take out cash if needed from an ATM.
“The absolute no-go is to take out money from an airport bureau de change which can result in you being hit with an exchange rate of up to 10-20 percent when exchanging or buying back cash.”
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