Pound euro exchange rate soars and stays on ‘solid footing’ – travel money latest

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

The pound to euro exchange rate is on “solid footing” as the first week of February starts. This has meant GBP could “make further gains” this week. Coronavirus continues to prove a barometer to sterling’s movements.

The success of the covid vaccine rollout has done much to strengthen the pound.

Much new data is out this week, particularly from Europe, with the biggest release from the Bank of England.

The pound is currently trading at 1.1327 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.

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“Sterling starts the week on relatively solid footing, remaining above the 1.13 handle,” said Brown.

“This left the pound in a good position to make further gains as the week progresses; especially if the UK’s vaccination programme continues at the present cracking pace.

“A busy data docket, especially from the opposite side of the Channel, awaits this week.

“All of the releases are likely to be overshadowed by Thursday’s Bank of England decision.

Brown added: “The BoE will leave policy unchanged, though any references to the feasibility of negative rates may pose a considerable headwind to sterling into the back end of the week.”

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

Post Office Travel is currently offering a rate of €1.0888 over £400, €1.1046 for over £500, or €1.1103 for over £1,000.

Of course, sadly holidays aren’t set to happen this month at all with lockdown due to last the whole of February.

Travel is, therefore, not possible and the Government are clamping down on non-essential trips.

“If you are in the UK you should not travel abroad,” states the Foreign, Commonwealth and Development Office (FCDO).

“Under current UK COVID-19 restrictions, you must stay at home.

“You must not travel, including abroad, unless you have a legally permitted reason to do so. It is illegal to travel abroad for holidays and other leisure purposes.”

Despite the favourable pound to euro exchange rate, travellers are urged not to buy travel money for future getaways.

James Lynn, co-CEO and co-founder of Currensea told Express.co.uk: “It may be tempting to change back leftover travel money, or even take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this.

“Market movements are often more marginal in reality than they appear.”

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