Pound to euro exchange rate: GBP struggles to gain strength amid plummeting economy

The pound to euro exchange rate remains in a “rangebound” state as coronavirus developments across Europe lead the way for traders. Following last week’s decision to axe further destinations from the UK travel corridor list, including France and the Netherlands, rising cases of COVID-19 are proving detrimental to the strength of sterling.

The pound is currently trading at a rate if 1.1040 against the euro according to Bloomberg at the time of writing.

Both the European and UK economies have suffered in the wake of the pandemic.

UK data revealed last week shows the nation’s economy has plunged into its first recession in 11 years.

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

“Sterling struck a softer tone against the common currency on Friday, testing the bottom of the recent range at €1.1050, though a lack of data or notable headlines from either side of the Channel continues to contribute to tight trading ranges,” he said.

“Such a theme is likely to be evident again today, with the data docket devoid of any notable releases, leaving investors to ponder both coronavirus developments and the state of the respective economic recoveries in the UK and EU.”

Despite the latest removals from the air bridge list, there are still some destinations Britons are allowed to travel to.

In Europe, this includes holiday hotspots such as Croatia, Greece, Germany, Hungary, Italy and Turkey.

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Britons can visit any of the destinations on the travel corridor list without the need to enter into a period of quarantine upon their return home.

This means many holidaymakers are on the hunt for the best exchange rates, which can seem like a headache amid the ongoing uncertainty.

However, finding good rates is possible, according to some experts.

According to Ian Strafford-Taylor, CEO of travel money specialist FairFX is to plan well in advance.

“Travel restrictions are easing and many consumers are understandably excited to get back out and explore the wider world after months in lockdown,” he said.

“For those venturing abroad, there are many cheap flight and hotel deals to take advantage of but we’d urge holidaymakers not to waste those savings by leaving their holiday money to the last minute.”

With many travel money providers now reopening their doors in the wake of lockdown measures, Mr Strafford-Taylor says shopping around is one way to try to get the most for your money.

“Whether you’re paying by paper or by plastic, the best thing you can do is to plan ahead,” he said.

The Post Office Travel Money is currently offering €1.0683 for amounts of £400 or more, and €1.0893 for amounts of £1,000 or more.

Mr Strafford-Taylor also urges Britons not to do one thing.

Changing money at the airport, according to the financial expert, is a likely way to lose money.

“Be warned, even when bureau de change desks do open again, they offer notoriously poor rates, leaving holidaymakers out of pocket once again,” explained the expert.

“Our previous investigations have found some airports offering rates as much as 29 percent lower than the market rate which is a lot of money to lose out on just for leaving it to the last minute.”

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