Pound to euro exchange rate: GBP sees sudden boost but ‘second wave’ causes major concern

The pound saw a modest surge against the euro after traders noted the latest policy decisions had a “hawkish lean” to them. However, while traders may have interpreted the outcome of the meeting as showing some signs of hope for the UK economy, a sudden surge in coronavirus cases in Europe has lead to further travel bans.

Sterling is currently trading at a rate of 1.1086 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his insight into the current rate.

“Sterling notched its first daily gain in three against the euro yesterday, with the pound boosted by the market interpreting the BoE’s latest policy decision as having a rather hawkish lean to it, and the euro selling-off amid fears of contagion on the E/Z banking sector from the ongoing issues in Turkey,” he said.

“Today, the monthly US labour market report will be the market’s primary focus, though risk appetite may be a little soft going into the weekend if the stalemate over another US stimulus package continues.”

Though there was hope for the economy both in the UK and Europe as businesses and travel began to slowly creep back to a “new normal”, a sudden surge in cases in some European nations is threatening to rock economic recovery.

Following the sudden removal of Spain from the UK’s quarantine-free travel list last week, one more European nation has now been axed.

Belgium is amongst three new countries to have travel advisories reinstated.

The other two banned countries include Caribbean destinations the Bahamas and Andorra.

The Foreign and Commonwealth Office (FCO) is advising Britons to avoid all but essential travel to these nations.

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Secretary of State for Transport Grant Shapps announced the news on Twitter on Thursday night.

He explained that the reason is to keep coronavirus infection rates “down”.

Mr Shapps tweeted: “Data shows we need to remove Andorra, Belgium and The Bahamas from our list of #coronavirus Travel Corridors in order to keep infection rates DOWN.

“If you arrive in the UK after 0400 Saturday from these destinations, you will need to self-isolate for 14 days.”

Further threat lies ahead for Europe, with Malta already being removed from another of other country’s “green lists” due to a rise in cases of the virus.

Though the Government has revealed no immediate plans, Prime Minister Boris Johnson has said that he will not hesitate to amend the travel list if necessary.

“I’m afraid you are starting to see in some places the signs of a second wave of the pandemic,” he warned.

Yet, even amid the uncertainty of travel, many Britons are gearing up to travel to one of the countries which the government has given the thumbs up.

While today’s sudden boost for the pound could be a good indication to purchase travel money, shopping around is also advisable for those who want to bag the best rates.

Most travel money providers have reopened their doors since lockdown, which means there are certainly more options.

However, the key is to think ahead according to experts.

Ian Strafford-Taylor, CEO of travel money specialist FairFX, told Express.co.uk: “Whether you’re paying by paper or by plastic, the best thing you can do is to plan ahead.”

The Post Office Travel Money is currently offering rates of €1.0658 for amounts of £400 or more, €1.0813 for amounts of £500 or more, and €1.0868 for £1,000 or more.

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