The pound sterling’s exchange rate against the euro fell from what was described as a “13-week high” in late March, to new “six-week lows” in recent days. It comes against a backdrop of growing concerns about the deployment of vaccination in Europe, coupled with “lackluster” economic developments.
There is good news for the pound, however, which remains stable and “supported” around the 1.15 mark.
As of this writing, the pound is currently trading at a rate of 1.1505 according to Bloomberg.
Michael Brown, Currency Expert at Caxton FX, shared his exclusive take on the exchange rate with Express.co.uk.
He explained: “The Euro sterling did not do anything significant yesterday, besides confirming that strong support and bearish demand continues to exist around the 1.15 grip.
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“On the economic data front, the UK’s gross domestic product (GDP) rose 0.4% in February, missing the market consensus of 0.6%.
“However, investors shrugged off the negative data and remain optimistic about future growth as the easing of restrictions would lead to a resumption of economic activity in the coming months.”
There are concerns about the impact that a major change at the Bank of England could have on the pound in the coming months.
Mr Vessey explained: “The pound was under pressure after the announcement of the departure of the Chief Economist of the Bank of England (BoE), Andy Haldane, from the central bank later this year after the committee meeting. June Monetary Policy Plan (MPC).
Although hopes are pinned on May 17 as the date for resuming some international travel, this will only be confirmed if the Global Travel Taskforce deems it “safe” at the time.
Therefore, a travel money expert warned against changing money before anything was confirmed.
“A lot of people buy their vacation money when the rate is favorable, even if it’s months before their actual trip,” said Paul Brewer, CEO of Currency Online Group.
“Normally this is very smart because it locks in a good rate, which means they get more for their money.
“However, with unexpected changes to the quarantine rules week after week and with so many other uncertainties, it can leave you stuck with thousands of pounds of hard currency that you can’t use.”