He predicted a poor performance from the pound, saying: “This morning’s inflation data, although likely to show a spike in UK prices, will largely be ignored given it is skewed by a range of one-off factors.
“Therefore, another rangebound day may lie ahead.”
George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his insight on the current pound-euro and pound-dollar exchange rates yesterday.
However, the UK’s inflation rate has increased in recent months, and if the pound could strengthen if this continues.
“The post-lockdown spending spree in the UK has begun, as the UK’s inflation rate doubled in the month of April,” Mr Vessey explained.
“Consumer prices climbed 1.5% from a year earlier last month following a 0.7% rise in March.
“Sterling’s reaction was generally muted, but it could strengthen if this higher inflation trend persists.”
The Currency Strategist added: “GBP/USD is hovering just shy of $ 1.42 after a strong jobs report hoisted sterling higher yesterday.
“GBP/EUR is back under the €1.16 mark though following broad-based euro strength as European economies continues to slowly reopen.”
The ban on international travel was lifted on Monday, May 17, meaning that Britons are now permitted to holiday abroad.
The UK’s travel traffic lights system means that holidaymakers can travel to “green” countries without having to quarantine on return.
However, travel experts have warned that “extra caution” is due in the coming weeks when booking holidays and swapping travel money.
James Lynn, CEO and co-founder of Currensea, said: “While it’s excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers.
“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.
“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.”
This post originally appeared on Daily Express :: Travel Feed