Pound to euro exchange rate sees slight upturn following drop
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The pound to euro exchange rate has been “rangebound” somewhere around the 1.15 mark in recent days. This has largely been the result of a lack of major developments influencing traders.
However, one expert has said things have become so “uninteresting” that “it’s almost as if the market has been closed”.
According to Bloomberg, the pound is currently trading at a rate of 1.1502 against the euro at the time of writing.
Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his insight into the exchange rate.
He explained: “As expected, yesterday was another rangebound day for the moribund cross, which continues to do very little of interest; in fact, it’s almost as if the market has been closed the last few days, such is the lack of movement.
“Today’s quiet data calendar is unlikely to change matters, though Friday’s eurozone GDP and CPI prints are of interest.”
George Vessey, currency strategist at Western Business Solutions explained that despite the lack of major movement, sterling is still showing positive signs.
“The British pound has consolidated this week, lacking momentum to the upside but not giving way to selling pressure amidst wavering global risk appetite,” he explained.
“Good news for sterling is arguably already priced in until more evidence of the economic benefit of easing lockdown measures are revealed.
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“Yesterday, data from the Confederation of British Industry reinforced views that the rapid UK vaccine rollout and end of recent lockdowns had spurred growth, as monthly retail sales volumes jumped to their highest level since September 2018.
“For now, this optimistic data is largely expected though so long as the UK’s relaxation of restrictions continues as planned.
“Sterling may come under further selling pressure amidst ongoing political angst in many forms.
“The Scottish parliamentary elections are due in early May, UK Prime Minister Boris Johnson faces a stream of allegations and European Union (EU) lawmakers are soon to vote on the UK-EU post-Brexit trade deal.”
He added: “These ongoing political uncertainties could start weighing heavier on sterling, which is battling for control of the €1.15 handle against the euro.”
Though Britons may be looking to May 17 as a crucial day to find out whether or not they can jet off on holiday, it still remains too soon for travel money exchanges according to experts.
“Despite coronavirus restrictions easing across the UK, the outlook for overseas travel still lacks any real clarity with the May 17 deadline set by the Government just three weeks away,” said Ian Strafford-Taylor, CEO at travel money specialist FairFX.
“The coming days and weeks should offer some certainty for hopeful holidaymakers as ‘green list’ countries are announced and, as they are, we may well see the pound recover some losses.
“In the meantime, Brits hoping for an overseas break should keep an eye on any announcements and watch the pound closely to make sure they’re getting more bang for their buck by securing the best rates available for their travel money.”
Yesterday, the Secretary of State for Transport confirmed plans for a vaccine passport-style app is underway and will work using an existing NHS app.
James Lynn, co-CEO and co-founder of Currensea said: “It is beginning to look more and more likely that international travel will be back on the cards this Summer with the announcements this week that Spain will be welcoming tourists back in June and the NHS app will be used as a vaccine passport for travel.
“While we await a more formal announcement from the PM around which countries we will be able to travel to (and when) it may be tempting for many to rush to book this year’s holiday and take out holiday money now in preparation.
“However, while it is tempting to take out foreign currency in anticipation of a holiday 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.”
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