Home Travel Pound to euro exchange rate: GBP wobbles after a 'second day of...

Pound to euro exchange rate: GBP wobbles after a 'second day of losses' against the euro

The pound has experienced another turbulent week so far after experiencing both highs and lows. The pound managed to lose ground on the euro yesterday after the euro experienced a welcome boost brought on by the EU’s fund agreement. The pound is currently trading at 1.0999 against the euro, according to Bloomberg at the time of writing.

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This is below yesterday’s rate of 1.1086.

Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.

He said: “Sterling notched a second straight day of losses against the euro yesterday, again dipping below the 1.10 handle, as the common currency remained well-bid after EU leaders agreed on the recovery fund package in the early hours of Tuesday morning.

“Today, the pound is once again likely to take its cue from shifts in risk sentiment, with rising Sino-US tensions and tit-for-tat consulate closures potentially pressuring high-beta assets.”

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Pound to euro exchange rate: GBP has ‘second day of losses’ (Image: EXPRESS)

Pound to euro exchange rate: The pound is currently trading at 1.0999 against the euro (Image: BLOOMBERG)

Today, investors will be keeping an eye on escalating China-US relations which spiked yesterday after the Trump administration decided to close a Chinese consulate in Houston.

A Republican senator claimed that the Texas consulate was an “espionage hub”.

China was outraged by the move and has threatened to retaliate.

The Chinese foreign ministry spokesman Wang Wenbin said at a news briefing: “China strongly condemns such an outrageous and unjustified move, which will sabotage China-US relations.

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“We urge the US to immediately withdraw its erroneous decision, otherwise China will make legitimate and necessary reactions.”

George Vessey, UK Currency Strategist from Western Union Business Solutions explained how the pound took plunged yesterday. 

He said: “The British Pound took a tumble yesterday following renewed risk aversion amid rising geopolitical tensions and the increasing concern that the Brexit transition period might end without a trade deal between the UK and EU.

“A UK-US trade deal also looks doubtful ahead of the US election in November.

“One of the reasons sterling fell abruptly against most of its peers yesterday was the rumour that the UK government is now working on the assumption that there won’t be a trade deal with the EU before the end of the year.

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Pound to euro exchange rate: The Post Office reopened its travel money shops recently (Image: GETTY)

“The bid to intensify talks, after no request to extend the transition period, has yet to show positive results and the government continues to urge businesses to prepare for a no-deal scenario, whereby the UK defaults onto World trade Organisation rules.

“Such a scenario is expected to send GBP/USD back under $ 1.20 and GBP/EUR potentially to parity.

“Meanwhile, the UK government has also stated a UK-US trade deal is unlikely to be reached this year as well because the coronavirus outbreak has sapped all the energy and resources from both sides.

“Sterling remains stronger versus the US currency though as the dollar sell-off has accelerated.”

Currencies (Image: EXPRESS)

Now that travel abroad is back on the cards for some Britons, the exchange rate has become even more important for those looking to get away.

The Post Office is currently offering a pound to euro exchange rate of 1.0556 for amounts over £400.

The exchange rate then improves if you spend more.

The rate increases to 1.0710 for over £500 and 1.0765 for over £1000.

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