Pound to euro exchange rate plummets as it experiences ‘awful time’ – travel money latest
Travel money: Post Office introduce multi-currency pre-paid card
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The pound to euro exchange rate has experienced an “awful time,” said experts. The downward trajectory of GBP began on Wednesday and fell again on Thursday. Sterling’s slump after its previous great heights “confirms that a near-term top is now in place.”
Little is in the calendar today as the final trading week of February comes to an end.
Therefore next week’s Budget will likely attract the attention of investors.
The pound is currently trading at 1.1478 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 has had, frankly, an awful time of it since the overnight highs early in Wednesday’s trade,” said Brown.
“Firstly it slid throughout the day on Wednesday, before taking another leg lower after a major bout of cross-asset risk aversion as a result of yesterday’s sharp rise in Treasury yields.
“This all confirms that a near-term top is now in place.
“With a quiet couple of days ahead on the data docket, investors are likely looking ahead to next week’s Budget for direction.”
So what does this mean for anyone buying euros at this time?
Post Office Travel is currently offering a rate of €1.1195 over £400, €1.1357 for over £500, or €1.1415 for over £1,000.
Most Britons are not able to travel abroad at the moment with only essential travel still permitted.
The current Government advice states: “Under current UK COVID-19 restrictions, you must stay at home.
“You must not travel, including abroad, unless you have a legally permitted reason to do so.
“It is illegal to travel abroad for holidays and other leisure purposes.”
Under the new ‘roadmap’ announced by Prime Minister Boris Johnson at the start of the week, it’s hoped domestic travel can return in April then foreign holidays in May.
Experts, therefore, advise against buying travel money for future holidays at this volatile time.
James Lynn, co-CEO and co-founder of travel card Currensea, commented: “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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