The pound to euro exchange rate initially had a good start to the week which soared over the Easter weekend. Since then, the GBP has taken a hit as the UK coronavirus death toll continued to spike which in turn soured risk appetite.
The pound is currently trading at a rate of 1.1498 against the euro according to Bloomberg at the time of writing.
Michael Brown, Currency Expert at Caxton FX, spoke to Express.co.uk to offer his exclusive insight.
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“Sterling traded sideways against the euro on Thursday, as investors continued to monitor the latest coronavirus developments, including the UK announcing a three-week long extension to the present lockdown period.
“Today, the virus will remain in focus, with risk appetite having the potential to sour into the weekend as investors close out positions.”
READ MORE: Pound to euro exchange rate: GBP surges to new strength
Residents in the UK are still required to stay at home and limit their outdoor activity.
The new measures were put in place to make sure the NHS could cope and make sure the death rate falls consistently.
However, UK Currency Strategist from Western Union Business Solutions, George Vessey said “lingering Brexit uncertainty” could also see the pound “sold off”.
He said: “After hitting a fresh 1-month high of $ 1.2646, GBP/USD took a U-turn nearly bang on the 200-day moving average, which often acts as a magnet before proving a strong level of resistance.
“Consequently, and in line with the risk aversion that swept across markets, GBP/USD fell over two cents yesterday.
“Is this the top for sterling or just a temporary blip before scaling higher?
“The panic fuelled plunge in the pound last month was tamed by the extensive fiscal and monetary stimulus that helped to calm turbulent markets.
“The recovery since then for sterling has been well received by British importers, alarmed at the rate at which sterling had fallen in such a short space of time.
“The upside appears limited from here though, particularly since lockdown in the UK is expected to be extended, raising fears of a 35 percent fall in GDP this quarter.