The pound to euro exchange rate is trading in a “quiet manner” according to experts. It may be up this morning on Thursday but remains within range – and shows little sign of shifting beyond this. Looking ahead at today, new data is unlikely “to move the needle significantly.”
Brown added: “Today’s UK retail sales number is unlikely to move the needle significantly, meaning we may again tread water into the weekend.”
Coronavirus continues to prove a barometer for sterling’s movements.
The success of the UK’s vaccine rollout has done much to boost GBP.
George Vessey UK Currency Strategist for Western Union Business Solutions has shared his insight on how the vaccine rate across Europe has impacted the exchange rate.
“As market participants continue to follow rising infections and restrictions in Europe potentially disrupting the UK’s recovery roadmap, recent tensions regarding access to coronavirus vaccinations have also been on the radar and negatively impacted risk sentiment,” he explained.
“Threats by the EU to halt exports of vaccines have caused a stir, not just amongst UK officials but some EU member states worry that tighter export restrictions risk damaging the EU’s reputation as a reliable source within the global medical supply chain.
“However, on Wednesday night both the UK and EU moved to calm the building tensions ahead of today’s European Council meeting on the subject.”
“From a market perspective, if Europe gets hold of more vaccines and the UK’s access is blocked, this could be deemed Euro-positive.”
Vessey added: “GBP/EUR has slipped from 13-month highs and is on track for its largest weekly fall in 2021.”
So what does this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.1159 over £400, €1.1321 for over £500, or €1.1379 for over £1,000.
While it may be tempting to buy holiday money while rates are good, it is inadvisable to buy them while there’s still so much uncertainty over foreign travel this summer.
Travel abroad is currently illegal with sizeable fines coming into force from Monday for those who jet off without “reasonable excuse.”
What’s more, quarantine and Covid tests are mandatory upon arriving in the UK.
Experts advise waiting until any volatility simmers down.
James Lynn, co-CEO and co-founder of travel card Currensea, said: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly.
“On top of this, when it comes to your consumer rights, using a travel card will always be a safer and cheaper option than using cash.”