Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his insight into the current exchange rate.
“Sterling started the week in fairly poor fashion against the common currency, backing away from resistance around the 1.17 handle, this morning trading closer to the 1.16 mark,” he said.
“The move appeared to have little in the way of fresh narratives around it, and likely owed to the fairly broad-based sterling weakness that was evident yesterday.
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“Nevertheless, with government borrowing expected to continue soaring this year, sharply rising long-term borrowing costs, tightening financial conditions, could be detrimental to the economic recovery and verbal intervention by the BOE may be needed to try and calm bond markets.
“GBP/EUR continues to lurk near the €1.17 handle, over 1% stronger month-to-date, but currently experiencing resistance around this zone.”
So, what does this all mean for travel money?
However, hope has been spared that some international travel could resume as soon as May 17 if Prime Minister Boris Johnson’s “roadmap” out of lockdown goes as planned.
Many travel firms, including easyJet, have already reported a spike in bookings since the PM’s announcement.
While it may be tempting to switch travel money in advance, particularly while the pound sits close to the 1.17 mark, one travel money pro has warned this may not be as lucrative as you first assume.
“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.”