Pound to euro exchange rate fails to gain ‘significant momentum’ but ‘consolidates’ highs

Pound steadies against euro in exchange rate

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The pound to euro exchange rate “pulled away from the ‘flash highs” it made on Tuesday night yesterday. GBP failed to work up “significant upwards momentum,” said experts. It’s predicted that “a period of consolidation” is now due.

The pound is currently trading at 1.1629 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.

“As largely expected the pound spent most of yesterday pulling away from the ‘flash’ highs that it had made overnight, failing to maintain any kind of significant upwards momentum,” said Brown.

“As a result, there is now a high likelihood that 1.1705 will form a near-term top for the pair, and that a period of consolidation can be expected.”

The expert added: “Little is on the data docket today, making that consolidation more likely.”

George Vessey, UK currency strategist for Western Union Business Solutions, explained how the success of the Covid vaccine rollout in the UK was to thank for the pound’s hike.

“Sterling advanced against several major currencies and kept alive its 2021 uptrend after Prime Minister Boris Johnson on Monday revealed a roadmap out of lockdown that could see the country back to normal by mid-year, provided the COVID-19 pandemic is quashed by the country’s vaccination program.

“The UK’s jab count of 18 million and readiness to weigh vaccine passports offered extra strength to GBP/USD.”

Vessey continued: “Meanwhile, fear of AstraZeneca not being able to perform on the EU’s contracted vaccine delivery and British scientists warning the PM Johnson that the June deadline for total unlock may challenge sterling’s climb.”

International holidays are hopefully returning from May 17 if all goes to plan.

Holidaymakers looking to buy travel money should therefore keep an eye out for favourable exchange rates nearer the time.

Ian Strafford-Taylor, CEO at travel money specialist FairFX said: “With further clarity on travel restrictions set to be announced on April 12, people should start keeping a close eye on exchange rates and be ready to get their spending money when they’re on the up.

“The golden rules for getting more bang for your buck when it comes to travel money are to always plan ahead, watch what the pound is doing and act quickly.

“Companies will no doubt be making every effort to make up some of the profits they’ve lost during the pandemic, so holidaymakers need to be aware of overinflated holiday prices when booking their trip.”

As for today, Post Office Travel is currently offering a rate of €1.1242 over £400, €1.1405 for over £500, or €1.1464 for over £1,000.

Experts warn against jumping the gun and buying holiday money now, despite the promising rates, however.

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 than the level it is at today.”

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