The pound to euro exchange rate “traded a touch softer” yesterday, experts have said. Investors continue to closely watch the impact of the coronavirus pandemic on the markets. There are currently nearly 2.5 million cases of the virus globally.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling traded a touch softer against the common currency on Monday,” Brown said.
“The trading week got off to a risk-off start with investors continuing to closely monitor the coronavirus pandemic and the latest infection data.
“Today, this morning’s labour market numbers are unlikely to give sterling much cause for concern, meaning the focus will remain on the pandemic as traders continue to grapple with its economic implications.”
Brexit is a topic returning to the table this week and risks GBP becoming vulnerable against the euro – although positive progression could boost the pound.
George Vessey, Currency Strategist at Western Union, commented: “This week the UK and EU Brexit negotiators will restart talks via video conference in an attempt to make progress on agreeing the foundations of their future relationship once the transition period is over at the end of this year.
“Sterling is vulnerable to downside risk if discussions don’t advance as it will increase fears of a no-trade deal Brexit.
“A positive tone from these talks will likely benefit the pound, but should disharmony appear to surface once again, this may weigh heavy on the already fragile sterling.”