Pound to euro exchange rate: GBP faces new lows as pandemic rages on
The pound to euro exchange rate suffered a blow this morning, recording its first daily loss in more than a week. Though the pound rallied to a three-week high on Thursday, the GBP has dropped 0.32 percent overnight.
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Sterling has been reacting to market conditions surrounding the ongoing pandemic with businesses worldwide closing their doors.
The pound is currently trading at a rate of 1.1326 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk Michael Brown, currency expert at Caxton FX, said: “Sterling pulled back against the euro on Friday, recording its first daily loss in eight, as investors took risk off the table ahead of the weekend, with the coronavirus pandemic remaining the centre of attention.
“The pandemic will remain in focus this week, with investors bracing for another volatile trading week as multiple nations approach the peak of the epidemic curve.”
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As Easter weekend approaches, what is usually a busy time for shops and restaurants, April is set to be a struggle for the economy.
George Vessey, UK Currency Strategist from Western Union Business Solutions explained how things may be different this year.
“Given the current health and economic crisis, it may be unwise to follow historical patterns in the market, yet April has often proved a positive month for GBP/USD.
“This has been the case since 2000 – each April since then has seen GBP/USD rise 16 of the past 20 years.
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“This time, the pound has started the month off modestly upbeat but remains nearly seven percent down on the year at time of writing,” he explained.
With many Britons now facing ruined holiday plans as a result of border closures, some may be considering changing their euros back to sterling.
Ian Strafford-Taylor, CEO of Equals (formerly known as FairFX), said: “Those with cash, whether leftover from a holiday or because travel plans were cancelled due to coronavirus, can change their currency back to sterling, but this will leave them at the mercy of buy-back rates, which have been hit by the falling pound over the last few weeks.”
The key to beating the buy-back rates is to shop around for the best offer.
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“Savvy consumers should shop around before they change currency back to make sure they’re getting the best offer available and not losing too much money in the process,” Strafford-Taylor continued.
However, many businesses, including the Post Office, have currently put their money exchange service on hold for now.
“If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then,” advises Strafford-Taylor.
“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether.”
The future of the exchange rate will continue to react to the battle against COVID-19 at the forefront.
In the UK there are currently over 47,000 confirmed cases of coronavirus.
The NHS has been working round-the-clock to treat symptoms, meanwhile globally work is ongoing to develop a vaccine to beat the virus.
However even once the virus has been tackled, the knock-on effect of the lockdown measures on the economy remains unprecedented.
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