Pound to euro exchange rate sees slight upturn following drop
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The pound to euro exchange rate has struggled to climb above the 1.15 handle in recent days. The Federal Open Market Committee (FOMC) decision is due to be announced later today, though experts are predicting this will have little impact on sterling’s position.
At the time of writing, the pound is currently trading at a rate of 1.1506 against the euro according to Bloomberg.
This is only a minor fall in comparison with Tuesday’s position when it traded at a rate of 1.1505 against the euro.
Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX gave his insight into the current exchange rate.
He explained: “Sterling-euro continues to cling onto the 1.15 handle, and do little else, with the bulls lacking momentum to take things further, and the bears failing to take the pair beneath that key support level.
“Today, the FOMC decision will be of little interest to the cross, perhaps pointing towards a rangebound day ahead.”
Meanwhile, George Vessey currency strategist at Western Business Solutions predicted new growth in the future for the euro.
”Generally, the uptick in the euro this month is a result of optimism about a strong economic recovery amidst an acceleration in the vaccination pace in Europe,” he said.
“Once European countries begin relaxing restrictions, the services sector is expected to contribute significantly to economic growth thanks to pent-up consumer demand and increased savings rate.
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“On Friday, the latest inflation data and first-quarter GDP results from the Eurozone will be released and are key trading points that could spark volatility in the euro.”
Though the exact holiday destinations Britons might be jetting off to from May 17 not yet been confirmed, the Government is due to offer more insight in the coming weeks.
Some experts have said it could be as soon as May 7 when hopeful holidaymakers find out which nations make it to the quarantine-free “green” list.
While some travel is likely to be given the go-ahead, switching travel money too soon carries a significant risk according to experts.
“Many people buy their holiday cash at a time when the rate is favourable even if that is months ahead of their actual trip,” said Paul Brewer, CEO of Currency Online Group.
“In normal times, this is very sensible as it locks in a good rate meaning they get more for their money.
“However, with unexpected changes in the quarantine rules week by week and with so much other uncertainty, this can leave you stuck with thousands of pounds worth of currency you can’t use.”
Britons should stay up-to-date with the latest information, and wait for further confirmation from the Government before rushing to switch currency.
Many high street travel money stores have already reopened, meanwhile, travel money exchanges can also be made online.
Britons are advised to do their research in order to find the best rate, however, it is also crucial to keep an eye out for hidden fees too.
“When the time to travel does arise, it is always important to research the currency you need and ensure you buy in advance,” advised James Andrews, senior personal finance editor at Money.co.uk.
“Depending on restrictions at the time, you will usually get the best deals by either ordering online or going to a travel money provider.”
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