Pound to euro exchange rate: Sterling drops again today after two month ‘lows’ last week

Travel: Simon Calder discusses Covid test pricing

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The pound to euro exchange rate has not seen much change since the bank holiday weekend, with sterling struggling to increase. Sterling “saw some downside” yesterday, according to an expert, and it is not expected to move much today.

The pound is trading at a rate of 1.1585 against the euro at the time of writing, according to Bloomberg.

This is much lower than its rate yesterday morning when it stood at the 1.1631 mark.

The pound has not changed much since the bank holiday weekend and has been gradually decreasing in value since last week.

On Friday, May 28, sterling was trading at a rate of 1.1651.

Michael Brown, currency expert at Caxton FX, spoke exclusively with Express.co.uk about sterling’s further drop today.

He said: “Sterling saw some downside against the euro yesterday, breaking beneath the 1.16 handle once more, in what appeared to be a flow-driven move, rather than anything more fundamental.

“Today’s calendar is barren, hence it will be interesting to see whether or not the bears can maintain yesterday’s momentum.”

Yesterday, Mr Brown commented on sterling’s struggle to increase since last week.

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He explained: “Sterling starts the holiday-shortened week broadly where it ended the last, trading just shy of 1.1650.

“The market seems to have little impetus to move prices further higher.”

Mr Brown continued to say there are Purchasing Managers Index surveys due to be released this week.

However, they are unlikely to cause changes in the exchange rate.

He added: “The data calendar is busy, with a host of PMI surveys due, though the impact of said data is likely to be rather minimal.”

Last week, currency experts explained that the pound’s poor performance could be due to France joining Germany in demanding quarantine from Britons travelling to the country.

“Revelations about the government’s handling of the pandemic are also weighing on sterling,” George Vessey, UK currency strategist at Western Business Solutions, also said.

He added: “Serious allegations were made by UK Prime Minister Boris Johnson’s former close aide Dominic Cummings as he was extremely critical of the Prime Minister’s efforts in handling the crisis.”

Britons may not be allowed to travel to France quarantine free this summer, but there are a number of countries on the UK’s green list.

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

When it comes to exchanging travel money, some travel money experts are warning customers that “preparation is key”.

James Andrews, senior personal finance editor at Money.co.uk, said: “Once there has been an official green light given on our planned summer trips, there are ways to ensure you can stretch your summer spending money as far as possible by sticking to the following tips.

“Do not exchange your money last minute at the airport, the rates are generally much less favourable than online or high-street alternatives, so preparation is key.

“If you find yourself acting on impulse, booking a last-minute break and needing to collect your euros upon your departure date, try to order them for collection in advance of your travel dates to take advantage of the best possible rates.

“For the best rates, take out a travel money card now. It doesn’t fully replace having currency in hand when you land, but once there you can use these at no cost for spending or withdrawing from a cash machine.”

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