Pound euro exchange rate in ‘tight range’ amid ‘vaccine euphoria’ – travel money advice
Pound fluctuates against Euro in latest chart index
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The pound to euro exchange rate soared to a “13-week high” at the end of March, but has since dropped back down to the 1.14 mark. Throughout the week sterling has remained “rangebound” despite the success of the ongoing vaccine roll-out in the UK.
The pound is currently trading at a rate of 1.1496 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX shared his exclusive insight with Express.co.uk on the current exchange rate.
“Sterling-euro remains rangebound, with the price action remaining rather dull,” he said.
“A base has formed around 1.1490, six-week lows, however, the cross has failed to significantly extend its rather brief rebound from this level, leaving us in a tight range.
“Today’s calendar contains little of interest, hence ‘more of the same’ sideways movement is likely today.”
Though the current exchange rate remains seemingly stuck in one position, George Vessey, UK currency strategist at Western Business Solutions says the UK’s “vaccine euphoria” is “still fizzing”.
“Sterling began 2021 in style, rallying over 5 percent against the Euro in the first quarter – its best quarterly performance in six years, but after clipping a high of €1.18, it has since shed half of its 2021 gains and is drifting near the €1.15 handle,” explained Mr Vessey.
“Perhaps much of the good news from the UK has been priced into sterling and the UK’s vaccine euphoria is fizzling.
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“In other words, the pound’s vaccine-powered rally is fading. The Euro, however, could soak up more demand as Europe’s vaccine pace gathers speed, with hopes that 70 percent of the EU population will be vaccinated by the summer.
“A stronger vaccine campaign is expected to lead to a faster economic recovery.
“Despite some lacklustre economic data from the bloc this week – industrial production falling to a 10-month low and investor morale dropping – markets participants are still buying into the common currency.”
He added: “A break above this key level could be the catalyst to drag GBP/EUR under the €1.15 mark.”
For hopeful holidaymakers, the sudden change in the exchange rate in recent weeks may seem confusing.
However, there are still ways to get more bang for your buck.
The key to this is both research and planning, according to James Andrews, senior personal finance editor at money.co.uk.
Mr Andrews encourages Britons not to rush into exchanging their travel money before the Government has confirmed more about whether or not international travel will go ahead on May 17.
“International travel is currently prohibited by law until May 17 earliest,” explained Mr Andrews.
“Until the Government has confirmed that you will be allowed to travel, consider if you need to exchange travel money right away.”
Even if travel plans are suddenly confirmed, Mr Andrews points out there are still some ways to be prepared when it comes to switching currency.
“Do not exchange money at the airport, their rates are almost always less favourable than you can get in advance,” he told Express.co.uk.
“No matter how last minute your plans are, never be tempted to buy currency at the airport – the prices are notoriously harsh.
“If you do want to collect your money at the airport, ensure you order it well in advance to take advantage of better rates.”
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