Pound euro exchange rate ‘notches 10-month-highs’ as GBP climbs – travel money latest

Travel money: Post Office introduce multi-currency pre-paid card

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The pound to euro exchange rate has experienced a spate of daily rises in recent days. GBP hit a nine-month high before escalating to a 10-month high yesterday. Coronavirus continues to prove a barometer for sterling’s movements.

The success of the Covid vaccine rollout has had a major part to play in the upwards trajectory of the pound.

Yesterday’s “gains were rather short-lived,” said experts.

However, GBP is expected to climb once again.

The pound is currently trading at 1.1499 against the euro, according to Bloomberg at the time of writing.

Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.

“Sterling notched fresh 10-month highs against the common currency yesterday,” said Brown.

“Though these gains were rather short-lived, with the cross failing to sustain any meaningful break of the 1.15 handle, and pulling back below overnight.

“Nevertheless, with sterling fundamentals continuing to look attractive, and markets remaining heavily momentum-driven, a further advance can be expected.”

George Vessey, UK currency strategist, Western Union Business Solutions, also shared his insight on yesterday’s performance.

“Sterling jumped to a 10-month high versus the Euro… breaching the key €1.15 handle after UK inflation data came in above forecasts.

“A splurge in spending for furniture, household goods and food drove inflation higher in January, whilst clothing and footwear prices remained subdued.

“The UK Consumer Prices Index (CPI) 12-month rate came in at +0.7 percent in January compared to +0.6 percent in December while beating expectations of a +0.5 percent print.”

He continued: “Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at +1.4 percent y/y last month versus +1.4 percent in November, surpassing the consensus forecast of +1.3 percent.

“The GBP/USD pair was slightly weaker through the early European session and had a rather muted reaction to the release of UK inflation figures.

“The downside remains limited though amid optimism that the impressive pace of vaccinations in the UK would allow the UK Prime Minister Boris Johnson to lift COVID-19 restrictions and get the economy moving.

“PM Johnson is considering a staged exit from COVID-19 lockdown that would see pubs and restaurants reopen in May, and hospitality and domestic holiday industries reopening in July.”

So what does all this mean for your holidays and travel money?

The good news is, travel money providers are offering much more favourable rates than before the exchange rate hike.

Post Office Travel is currently offering a rate of €1.1077 over £400, €1.1238 for over £500, or €1.1295 for over £1,000.

However, experts warn against buying travel money during these uncertain times when travel is banned for Britons.

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