Pound to euro exchange rate: Sterling clings to 1.16 mark ahead of potential ‘volatility’

Boris Johnson discusses future of coronavirus travel restrictions

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The pound performed well last week, with local elections being held across the country. As the market reopens this morning, it remains in the 1.16 handle against the euro. 

After a “rangebound” week, the pound clings onto the 1.16 mark this morning.

It is trading at a rate of 1.1613 against the euro at the time of writing, according to Bloomberg. 

This is slightly up from Friday, where it was trading at 1.1612.

Speaking to Express.co.uk, currency expert at Carton FX, Michael Brown said: “Sterling continues to trade in the low-€1.16s as the new week gets underway, with the cross having taken on a rather rangebound nature over the last few days.”

According to the expert, the market could see “volatility” as the week progresses.

He added: “The start of the week sees a quiet calendar, though a full ‘MOT’ on the UK economy is due as the week progresses, something that could potentially be a source of volatility in FX.”

At the beginning of last week, the pound hit new highs for 2021.

At the time, Michael said: “Sterling had its best day against the euro since last December yesterday, rallying to three week highs.

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“This is as the market reacted positively to the weekend’s election results, and the perceived lower risks of a second Scottish independence referendum.”

It was trading at the same rate as today, 1.163 and it has not moved much since.

What does this mean for travel money?

Today, the ban on international travel is lifted in the country, meaning holidaymakers can once again travel to countries around the world, adhering to the traffic light system plan. 

Travellers can jet off to the “green” list countries today, meaning there is no quarantine upon return.

These include Portugal, Gibraltar, Iceland, Singapore, Australia and New Zealand.

The Faroe Islands, Saint Helena, South Sandwich Islands and Brunei Darussalam are also on the “green” list. 

According to one expert, extra caution should be taken when planning holidays this year.

James Lynn, CEO and co-founder of Currensea explained: “While it’s excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers.

“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.”

“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.”

Travellers can also travel to countries on the “amber” list which sees a 10 days quarantine at home upon return and a pre-departure test.

Countries on the “amber” list include Antigua and Barbuda, Brazil, Colombia, India, Kenya, Peru and South Africa.

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