Pound increases against the euro in exchange rate
The pound saw some success trading against the euro in recent days thanks to “vaccine optimism”. However, overnight it has “struggled” to maintain is position “dipping back below” the €1.1280 “resistance level”.
Despite the drop, experts remain hopeful sterling will continue its “bullish” push back against the common currency
The pound is currently trading at a rate of 1.1248 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his exclusive insight and predictions for the exchange rate.
“Sterling has struggled to maintain its recent gains against the euro over the last day or so, dipping back below the 1.13 figure in Asian trade this morning, perhaps handing the bears a degree of near-term control,” he said.
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“Nevertheless, with the UK continuing to outpace those across the Channel in terms of vaccination, one can expect the bullish trend to resume.
“This morning’s PMI figures aren’t worth paying attention to.”
Today, the retail sector figures were revealed, with one financial expert describing it as a “bleak start to the new year” for the economy.
Jeremy Thomson Cook, Chief Economist at Equals Money said: “It was not a happy Christmas for the retail sector with a strong bounce back following November’s lockdown failing to materialise.
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“With December’s number rounding out the retail environment for 2020 the trends are clear for all to see; record declines for clothing, fuel and department stores with record increases for food stores and online shopping.
“With lockdown extending into January and beyond, the typical New Year sales impulse are likely to be absent from any upcoming numbers.
“We must also take noises from international businesses on supply chain delays as a result of the new trade rules of Brexit seriously.
“Consumption is crucial for the UK economy, but the current environment makes it very difficult to contribute positively to growth making for a bleak start to the new year for the retail sector.”
Though the demand for travel money may not be as high as usual due to the travel ban under lockdown rules there are likely still some Britons who need to switch over their currency.
For those who were hoping to jet off, but now face cancelled plans, exchanging their money might not actually be the wisest move according to one expert.
“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.”
Other UK residents may need to visit parts of Europe for “essential” purposes, or if they are also a legal resident in that country.
Though many high street travel money shops have been forced to close during the lockdown, the Post Office remains open.
Customers can purchase their travel money online and opt for click and collect from their local branch.
The Post Office is currently offering a rate of €1.0883 for amounts of £400 or more, €1.1041 for amounts of 500 or more and €1.1098 for amounts of £1,000 or more.
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