Pound to euro exchange: Sterling has ‘done rather little’ against euro in last 24 hours

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The pound to euro exchange increased yesterday for the fifth day in the row, rising to 1.1678 against the euro yesterday morning. However, there has been little change since.
Yesterday, Mr Brown said that sterling could be likely to climb further in the coming days.

He said: “The pound continues to benefit from the UK’s impressive covid vaccination programme and hopes that it will lead to a faster economic reopening.

“Today’s calendar is rather quiet for the cross, meaning that near-term momentum will likely be continued towards a test of the 1.17/1705 region that marked the cycle high a fortnight ago.”

George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his analysis yesterday.

He said: “Central banks like the US Federal Reserve and the Bank of England have downplayed the rise in bond yields thus far, whilst the European Central Bank (ECB) is likely to at least verbally intervene, or possibly increase asset purchases this Thursday to cool the bond market rout.

“Investors are becoming more optimistic about the global economic rebound,” Mr Vessey added.

“The vaccine rollouts allowing for economies to reopen, leading to an expected consumer-led recovery in growth and inflation are all contributing to the sell-off in safe-haven government bonds.

“But when yields rise too quickly, financial conditions can be negatively impacted and central banks may be forced to act. If the ECB does interject with more stimulus to limit the rise in European yields, then the Euro could come under further selling pressure.”

What does this mean for your travel money?

The Post Office is currently giving a rate of €1.1252 over £400, €1.1415 over £500, and €1.1473 over £1000.

Although they are favourable, these rates are slightly lower than yesterday’s offerings.

It can be tempting to buy travel money at this time, but James Lynn, co-CEO and co-founder of travel card Currensea, warned against this while foreign travel currently remains off the cards for Britons.

He said: “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.”


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