Pound to euro exchange rate: GBP struggles as Brexit worries join coronavirus fallout

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13 shares, 89 points

The pound to euro exchange rate “fell flat” ahead of the weekend, as traders kept their attention on ongoing economic ructions around the world. Though Brexit chatter quietened as the pandemic took centre stage, UK-EU negotiations are back in focus for traders.

Rising tensions between the US and China are also causing concerns for the stock markets.

The pound is currently trading at a rate of 1.1191 percent against the euro according to Bloomberg at the time of writing.

This is a modest overnight increase of 0.05 percent.

Michael Brown, a currency expert at Caxton FX spoke exclusively with Express.co.uk to share his expert insights on the current exchange rate.

READ MORE: Spain holidays: Nation says tourists can visit this summer

Pound to euro exchange rate: GBP struggles as Brexit worries join coronavirus fallout

Pound to euro exchange rate: GBP continues to struggle against the euro (Image: DX)

Pound to euro exchange rate: GBP struggles as Brexit worries join coronavirus fallout

Pound to euro exchange rate: The pound is trading at a rate of 1.1207 (Image: Bloomberg)

He said: “Sterling has traded largely flat against the common currency over the last two trading days, with both liquidity and trading volumes much thinner than usual as a result of the long weekend in both the UK & US.

“Nonetheless, rising tensions between the US and China, and niggling worries over post-Brexit trade, remain the main drivers of the pair.

“Today, and this week in fact, the data calendar is rather barren, meaning that focus should remain on the aforementioned geopolitical issues.”

In recent weeks, talks between the UK and EU has seen the pound plummet dramatically, at one point hitting a six-week low.

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This came following the news that both parties were unable to reach an agreement over the terms and conditions of the UK’s departure from the Union.

Despite this, it is the ongoing economic fallout from the coronavirus pandemic which has had the largest impact for traders.

While holidays may be on hold for now, a number of airlines have begun to announce plans to take to the skies once again, sparking hope for the continuation of summer holidays.

Though the Foreign and Commonwealth Office (FCO) continues to advise against “all but essential travel” for an “indefinite” period of time, airlines including easyJet, Ryanair, and most recently, Jet2 have all announced official dates to take off once again.

Pound to euro exchange rate: GBP struggles as Brexit worries join coronavirus fallout

Pound to euro exchange rate: Travel is on hold for now, with most flights dedicated to repatriation (Image: Getty Images)

Furthermore, hopes for agreed “air bridges” between partnering countries could speed up the return to travel for Britons.

These international partnerships will allow Britons to fly to countries with low infection rates.

Matt Crate, managing director of WeSwap, a P2P travel money provider explained: “The air bridge scheme could make foreign travel to some destinations more palatable for tourists this summer by negating the two-week quarantine period.

“This could mean that travel providers, hotels and hospitality workers both in the UK and abroad who rely on tourism can capitalise on the summer period.

“Leisure travel is seasonal and getting the travel industry moving again will mean trying to restart foreign travel in summer 2020.

“If the government can work with its counterparts in France, Spain and beyond as suggested, Brits can try and make the most of foreign travel this year and the industry can begin to get back to normal.”

However, as lockdown took over the UK in recent weeks, many travel money services closed their doors making it difficult for Britons to switch any holiday currency.

For Britons hoping to switch their money ahead of their travels, it may be difficult to negotiate the best rates if travel money providers remain closed.

It is not yet known when bureau de changes will reopen.

Additionally, those who have leftover travel money from past holidays are being urged to hold onto it until services return to normal.

Ian Stafford-Taylor, CEO of Equals (formerly known as FairFX) advised: “If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then.

“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether.”

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