Travel money: Post Office introduce multi-currency pre-paid card
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The pound to euro exchange rate has enjoyed success this week. Yesterday, GBP rose to a whopping nine-month high and has further built on that today. The triumph of the UK’s coronavirus vaccine rollout has helped drive sterling up.
Looking ahead at today, experts have said the calendar is “quiet” which is likely to further boost GBP.
The pound is currently trading at 1.1474 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling continues to trade well against the euro, printing new nine-month highs yesterday,” said Brown.
“The market continues to buy into the UK’s impressive pace of Covid vaccination, and the recent hawkish tones from the BoE.
“Today’s calendar is once more rather quiet, likely benefitting the pound in what are heavily momentum-driven markets at present.”
George Vessey, UK currency strategist at Western Union Business Solutions, commented on the vaccine’s impact on the pound.
“The vaccination rollout in the UK is the main driving force behind sterling’s positive run, coupled with reduced negative interest rate expectations and increasing global risk appetite as faster recovery expectations grow,” he explained.
“Focus is on the brighter future, the reflation trade and pick-up in economic growth that will continue favouring risk assets, including commodity and emerging market currencies but also risk-correlated currencies like GBP.”
Looking at the week to come, Vessey said: “Data-wise this week, UK inflation is released on Wednesday and is forecast to slow.
“The first signs of how February fared on the activity front will be revealed by flash PMI data on Friday and UK retail sales and public finances will be put under the microscope on Friday too.”
As for what’s happening in the Eurozone, Vessey commented: “One of the main talking points in Europe is the fact that the EU is still far behind its peers in the vaccine rollout, meaning the easing of restrictions across Europe will also be slower and therefore the economic recovery will be delayed.
“This presents a downside risk to the Euro, especially against GBP.
“Eurozone fourth-quarter GDP results drop in on Tuesday with German sentiment surveys.
“The European Central Bank will publish the minutes of its latest monetary policy meeting on Thursday and flash PMIs drop in on Friday.
“The Euro will likely benefit from improved global risk appetite, but GBP/EUR could extend its recent uplift beyond the €1.15 mark given the vaccination differential between the EU and UK.”
So what does all this mean for your holidays and travel money?
The good news is, travel money providers are offering much more favourable rates than before the exchange rate hike.
Post Office Travel is currently offering a rate of €1.1026 over £400, €1.1186 for over £500, or €1.1243 for over £1,000.
However, experts warn against buying travel money during these uncertain times when travel is banned for Britons.
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