Tag Archives: exchange

Pound euro exchange rate ‘in poor fashion’ while ‘backing away’ from 1.17 handle

After a period of increase for the pound to euro exchange rate, sterling has begun the week “in fairly poor fashion” according to one financial expert. Though there are few major developments anticipated to shake the exchange rate in the next few days traders are said to be keeping a close eye on the upcoming “Bank of England (BoE)” decision due on Thursday.
The pound is currently trading at a rate of 1.1610 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his insight into the current exchange rate.

“Sterling started the week in fairly poor fashion against the common currency, backing away from resistance around the 1.17 handle, this morning trading closer to the 1.16 mark,” he said.

“The move appeared to have little in the way of fresh narratives around it, and likely owed to the fairly broad-based sterling weakness that was evident yesterday.

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“So far, the central bank has followed a similar stance to the Fed in interpreting the jump in yields as a natural response to a healthier economic outlook, particularly given the UK’s rapid vaccination rollout relative to other nations.

“Nevertheless, with government borrowing expected to continue soaring this year, sharply rising long-term borrowing costs, tightening financial conditions, could be detrimental to the economic recovery and verbal intervention by the BOE may be needed to try and calm bond markets.

“GBP/EUR continues to lurk near the €1.17 handle, over 1% stronger month-to-date, but currently experiencing resistance around this zone.”

So, what does this all mean for travel money?

Currently, Britons can not jet off on leisure holidays under the ongoing lockdown rules.

However, hope has been spared that some international travel could resume as soon as May 17 if Prime Minister Boris Johnson’s “roadmap” out of lockdown goes as planned.

Many travel firms, including easyJet, have already reported a spike in bookings since the PM’s announcement.

While it may be tempting to switch travel money in advance, particularly while the pound sits close to the 1.17 mark, one travel money pro has warned this may not be as lucrative as you first assume.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”

Pound euro exchange rate ‘just shy of 1.17 mark’ but BoE ‘fireworks’ may force change

The pound to euro exchange rate hasn’t moved much over the weekend, still nearing the 1.17 mark. One financial expert has warned sterling has little “fresh impetus” to push further this week.
However, the Bank of England (BoE) is set to announce its March policy on Thursday, which could cause “fireworks”.

The pound is currently trading at a rate of 1.1664 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.

He said: “Sterling begins the week practically unchanged from where it ended the last, just shy of the €1.17 mark, and lacking fresh impetus to push on a break that barrier.

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One way this may happen is with the introduction of vaccine passports or, as the EU has suggested, a “digital green pass” storing a traveller’s vaccination information.

So far, this has not been confirmed, yet many Britons have already booked up their holidays for later in the year.

It may be tempting to exchange travel money while rates are particularly favourable.

However, one travel money expert has warned this might not actually be a wise decision.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”

Despite this warning, according to research from money.co.uk, website traffic searching for pound euro exchange rates have increased by 143 percent.

James Andrews, personal finance expert at money.co.uk said: “With Greece announcing it will open its borders to tourists from mid-May and exchange rates rising over the last few days, it’s very tempting to grab the first deal you see that looks decent.

“However, no matter how good one particular deal looks, you always need to compare offers to make sure you’re not wasting your money – the best deals will have a good exchange rate with the lowest additional charges like delivery fees.

“Take your time, and compare a wide range of providers before you make your purchase”

The Post Office Travel money is one high street brand which offers travel money exchanges.

The Post Office is currently offering a rate of €1.1215 for amounts of £400 or more, and €1.1436 for amounts of £1,000 or more.

Pound euro exchange rate: Sterling still ‘yet to break above’ 1.17 handle against the euro

However, Mr Brown was on Wednesday hopeful that sterling could be likely to climb further in the coming days.

He said: “The pound continues to benefit from the UK’s impressive covid vaccination programme and hopes that it will lead to a faster economic reopening.”

George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his analysis on Wednesday.

He explained: “Central banks like the US Federal Reserve and the Bank of England have downplayed the rise in bond yields thus far, whilst the European Central Bank (ECB) is likely to at least verbally intervene, or possibly increase asset purchases this Thursday to cool the bond market rout.

“Investors are becoming more optimistic about the global economic rebound,” Mr Vessey added.

Pound to euro exchange: Sterling has ‘done rather little’ against euro in last 24 hours

The pound to euro exchange increased yesterday for the fifth day in the row, rising to 1.1678 against the euro yesterday morning. However, there has been little change since.
Yesterday, Mr Brown said that sterling could be likely to climb further in the coming days.

He said: “The pound continues to benefit from the UK’s impressive covid vaccination programme and hopes that it will lead to a faster economic reopening.

“Today’s calendar is rather quiet for the cross, meaning that near-term momentum will likely be continued towards a test of the 1.17/1705 region that marked the cycle high a fortnight ago.”

George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his analysis yesterday.

He said: “Central banks like the US Federal Reserve and the Bank of England have downplayed the rise in bond yields thus far, whilst the European Central Bank (ECB) is likely to at least verbally intervene, or possibly increase asset purchases this Thursday to cool the bond market rout.

“Investors are becoming more optimistic about the global economic rebound,” Mr Vessey added.

“The vaccine rollouts allowing for economies to reopen, leading to an expected consumer-led recovery in growth and inflation are all contributing to the sell-off in safe-haven government bonds.

“But when yields rise too quickly, financial conditions can be negatively impacted and central banks may be forced to act. If the ECB does interject with more stimulus to limit the rise in European yields, then the Euro could come under further selling pressure.”

What does this mean for your travel money?

The Post Office is currently giving a rate of €1.1252 over £400, €1.1415 over £500, and €1.1473 over £1000.

Although they are favourable, these rates are slightly lower than yesterday’s offerings.

It can be tempting to buy travel money at this time, but James Lynn, co-CEO and co-founder of travel card Currensea, warned against this while foreign travel currently remains off the cards for Britons.

He said: “Market movements are often more marginal in reality than they appear.

“’

Pound to euro exchange rate 'promising' as GBP on 'steady ascent' – travel money latest

Vessey added: “GBP/EUR could edge closer towards fresh 13-month highs as Euro demand continues to fade.”

Looking at the week ahead, he said: “On the data-docket this week, Friday is a short-term indicator day – the UK reveals monthly GDP results, industrial & manufacturing production, and the trade account.”

Vessey continued: “Volatility in bond markets has sent shockwaves through equity and FX markets over the past few weeks, but the bond sell-off should be contained with strong verbal reiteration from central bankers in the coming days.

“The successful vaccination story so far, coupled with easing lockdown measures are both boosting inflation expectations as investors bet on pent-up consumer demand driving prices higher during the economic recovery cycle.”

Pound to euro exchange: Sterling-euro has ‘finally broken out of its recent slumber’

George Vessey, UK currency strategist at Western Union Business Solutions, also shared his insight on the sterling-euro exchange rate today, commenting on how the UK’s vaccine rollout will impact it.

He said: “The UK’s drug regulator, Medicines and Healthcare Products Regulatory Agency (MHRA) showed readiness to fast-track the approval for vaccines relating to the COVID-19 variants and offered another boost to vaccine optimism. Meanwhile, the UK warned the European Union (EU) to solve the trade jitters as soon as possible after the bloc raised concerns over Britain’s trade treatment of Northern Ireland (NI).

“The UK government may able to bring forward its reopening plans for the economy as the vaccination programme is set to reach a tipping point, a development that could aid further gains in GBP. The data suggests that 35-37% of the population needs to be vaccinated before a breakthrough is seen, but promisingly, 31.4% of the total population have had at least one dose of a COVID-19 vaccine in the UK,” he added.

Mr Vessey also mentioned Brexit, saying: “Meanwhile, in response to the UK’s warning about NI, the European Parliament has declined to set a date to ratify the Brexit trade deal, which could dampen sterling sentiment. The EU term the UK’s move over NI as against the Brexit deal but the UK government rejects the criticism.

“Looking forward, global traders will keep an eye on the US stimulus updates from the Senate and how the EU and the UK manage to overcome Brexit differences as well as spread vaccine optimism.”

Pound to euro exchange: Yesterday’s Budget had 'practically no effect' on the pound

Presented by ExpressUk

Chancellor Rishi Sunak announced his latest Budget yesterday, explaining how the Government will provide support for people as the country’s third national lockdown eases in the upcoming months. News of his Budget did nothing to the pound, as it continues to hold position above the 1.15 mark against the euro.

Mr Brown said: “Sterling-euro remains stubbornly rangebound in the mid-1.15s, with yesterday’s Budget having had practically no effect on the pound, and the market still looking for fresh impetus to determine its next direction.

“Today’s calendar is unlikely to provide that, given the rather barren nature of European-specific events, meaning another rangebound day could lie ahead for the cross,” he added.

Mr Brown yesterday predicted that Rishi Sunak’s news may not change the euro-sterling exchange rate.

He said: “One may assume that today’s Budget could be a market mover, and there is a possibility that it will be; however, past Budgets have never been a huge event for the FX space, and with so much appearing to have been leaked in advance, the majority of announcements are probably priced in already.”

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Additionally, the currency expert explained: “Sterling continues to tread water in the mid-1.15s, with the early part of the week having brought little for investors to get their teeth into.”

George Vessey, UK currency strategist at Western Union Business Solutions, also shared his insight after Mr Sunak’s Budget news, saying: “As expected, this was an expansive budget designed to support the UK economy as it prepares for a re-opening from lockdown.

“The Budget offered little in terms of big surprises and therefore had low material impact on the pound. However, in terms of business and market sentiment, the overall tone of the Budget was optimistic. The upgraded OBR growth forecasts for next year are quite striking – over 7% growth would be the biggest in over 80 years. The unemployment rate peak was lowered, too – again a positive update which should add to the constructive outlook for the UK economy (and thus for GBP) during the next quarter and throughout 2021.”

Mr Vessey added: “The continued support for businesses and households, largely via the extension of current support measures, is integral for the health of the economic recovery if it is to mirror the successful vaccination rollout and trigger and strong rebound in output. A premature withdrawal of fiscal support or surprisingly high tax hikes would have been GBP negative, but for now the UK economy and Sterling’s outlook appears promising.”

Mr Vessey continued to comment on the pound-euro exchange rate, as well as the sterling-dollar exchange, saying: “Sterling’s muted reaction to the UK Budget statement yesterday wasn’t a big surprise. An extension of some support schemes right through 2021 at a cost of an additional £60bn coupled with additional infrastructure spending and hints at gradual tax increases saw sterling rise slightly versus the Euro but stabilise against the US Dollar.

“Jobs protection was the government’s main strategy and the furlough extension until September was welcomed. The unemployment rate is forecast to peak at 6.5%, nearly half that of previous forecasts. This year’s growth forecast was revised lower, but the 2022 forecast jumped to 7.3%, which would be the biggest rebound in output since the 1940s.”

The currency strategist added: “The pacey vaccine rollout in the UK, coupled with continued fiscal support, is boosting confidence in the economic outlook and is supportive for sterling.

“GBP/USD has slipped south of $ 1.40 this week, but the uptrend remains intact and could resume if the bond market cools.”

What does all this mean for travel money?

easyJet and Skyscanner have already reported a surge in bookings for the summer months after the Prime Minister suggested some international travel may go ahead from May if the Global Travel Taskforce deems it safe and possible.

In anticipation, some hopeful holidaymakers may be looking to take advantage of the current rates and swap money in advance.

However, James Lynn, co-CEO and co-founder of travel card Currensea, advised against this, saying: “Market movements are often more marginal in reality than they appear. ’”

Pound euro exchange rate ‘treads water’ before ‘market moving’ Budget – travel money tips

Chancellor Rishi Sunak is set to announce his latest Budget today, explaining how he will provide support for the nation as it emerges from its third national lockdown in the coming months. While traders anticipate the news, the pound continues to hold its position above the 1.15 mark against the euro.
However, it is likely to see some changes as news of the Budget plans emerge.

The pound is currently trading at a rate of 1.1551 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke exclusively to Express.co.uk to share his insight into how the current exchange rate.

“Sterling continues to tread water in the mid-1.15s, with the early part of the week having brought little for investors to get their teeth into,” he explained.

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“One may assume that today’s Budget could be a market mover, and there is a possibility that it will be; however, past Budgets have never been a huge event for the FX space, and with so much appearing to have been leaked in advance, the majority of announcements are probably priced in already.

“Final services PMIs are also due, though can be safely ignored.”

According to George Vessey, UK currency strategist at Western Union Business Solutions, GBP investors are “unnerved” by the approaching news from the Chancellor.

“The highlight anticipated UK Budget will be announced by Chancellor Rishi Sunak, with all eyes on how the government will support businesses and households through the pandemic whilst unveiling plans to balance public finances in the future,” he said yesterday.

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“Sterling is sliding though, dogged by the threat of new virus variants and general risk appetite waning.

“Talk of tax increases is likely unnerving GBP investors too as a shift in fiscal strategy too soon could create an unnecessary headwind for the recovery.

“Alongside the Budget, Mr Sunak is expected to publish a review of expected proposed changes to make the UK a more attractive place for entrepreneurs to take companies public – competing with the likes of New York, Amsterdam and Frankfurt.”

He continued: “Solid manufacturing expansion in Europe is helping the bloc’s recovery and is a positive sign for the expected growth rebound.

At the moment many Britons are unable to travel under the currency lockdown restrictions which state travelling for leisure is “illegal”.

However, with the Global Travel Taskforce set to be reinstated within the coming months, there is hope ahead for holidays.

easyJet and Skyscanner have already reported a surge in bookings for the summer months after the Prime Minister suggested some international travel may go ahead from May if the Global Travel Taskforce deems it safe and possible.

In anticipation, some hopeful holidaymakers may be looking to take advantage of the current rates and swap money in advance.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

Pound euro exchange rate ‘calmer’ and ‘firmer’ ahead of Rishi Sunak budget speech

The pound to euro exchange rate has began the week on a much “calmer note”, following a “chaotic trade to end last week”. Sterling is currently trading above the 1.15 handle and is heading towards Chancellor Rishi Sunak’s Wednesday Budget announcement on a “firmer” foot according to one expert.
The pound is currently trading at a rate of 1.1577 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.

He said: “After somewhat chaotic trade to end last week, the pound finds itself on both calmer and firmer footing this morning, once more trading above the 1.15 handle, as attention begins to shift to Wednesday’s Budget.

“Today’s manufacturing PMI data shouldn’t bother the market too much, with attention more focused on leaks ahead of Chancellor Sunak’s aforementioned speech.”

READ MORE: Pound to euro exchange rate plummets amid ‘awful time’

“You must not travel, including abroad, unless you have a legally permitted reason to do so.

“It is illegal to travel abroad for holidays and other leisure purposes.”

Furthermore, under current lockdown rules many high street travel money retailers remain closed.

Luckily, some of them are offering online click and collect services, including the Post Office Travel Money.

On its website, The Post Office Travel Money says customers can “order euros online – collect in two hours from your nearest branch or get next-day delivery.

The Post Office Travel Money is currently offering rates of €1.1097 for amounts of £400 or more, €1.1259 for amounts of £500 or more and €1.1316 for amounts of £1,000 or more.

With Prime Minister Boris Johnson suggesting some international holidays could be given the go ahead from May 17, some Britons might be considering buying travel money while the rates are favourable.

However, one expert has warned this is not necessarily a good idea.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”