Pound to euro exchange rate: GBP ‘slides’ in fourth daily decline amid new Covid measures

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Yesterday, Prime Minister Boris Johnson introduced several new measures across England to help halt the spread of COVID-19. The measures could be in place for the next six months if England’s infection rate does not dramatically improve. The rules include people working from home wherever possible, pubs, bars and restaurants closing at 10pm and limits on guests and weddings and funerals.

The stringent measures have had an impact on sterling as investors ponder how they could impact on the already crippled UK economy.

The pound is currently trading at 1.0862 against the euro, according to Bloomberg at the time of writing.

This is below yesterday’s rate of 1.0889, with sterling managing to remain below that 1.09 handle.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.

He said: “Sterling softened a touch further against the euro yesterday, sliding to its 4th consecutive daily decline, as traders weighed what impact new coronavirus restrictions would have on the fragile economic recovery that has been underway since the end of Q2.

“Looking ahead, that is likely to remain the main focus today, though post-Brexit trade talks will also be in focus, given reports that negotiators see a ‘window of opportunity’ in which a deal could be agreed.”

George Vessey, Western Union Business Solutions said that sterling didn’t just fall against the euro but other currencies too.

He said: “The British Pound fell nearly one percent against multiple currencies yesterday, dragging GBP/USD back into the $1.27 territory and towards key technical support levels.

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“The rise in coronavirus cases, tighter social distancing measures and the increasing probability of another national lockdown are weighing on UK assets.

“Experts believe the UK faces soaring Covid-19 cases unless the government enforces more stringent restrictions to prevent the spread of the virus.

“Some action has already been taken but worries about another national lockdown, and its impact on the UK economy and labour market, has contributed to a risk-off market environment.

“Sterling has weakened across the board and the UK’s FTSE 100 saw £52billion wiped off its value yesterday as a result.

“Meanwhile, sterling remains vulnerable to Brexit-related headlines, with the government putting forward an amended version of the Internal Market Bill today, which keeps fears of a no-deal Brexit firmly on the table.

“GBP/EUR could fall towards parity and GBP/USD under $1.20 by year-end if such an outcome unfolds.”

For those thinking about purchasing travel money, the Post Office is offering good rates for euros.

The Post Office is currently offering a rate of €1.0491 for more than £400, €1.0643 for over £500 or €1.0698 for over £1,000.

Although it’s tempting to buy currency in advance if the exchange rate looks favourable, one expert has revealed that travellers should try not to do this.

Currency expert and founder of Currensea, James Lynn told Express.co.uk that travellers should try not to buy currency in advance if the rate looks good.

He said: “Rather than locking in something on a pre-paid card or getting currency in advance because the rate seems to be going one way or the other, it tends to be a far safer option just to use whatever rate there is at the time.

“Unless people have got a particular expertise in currency transactions, we would advise keeping those savings firmly in sterling until the time. Just in case that trip does get pushed back or cancelled.”

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