The pound to euro exchange rate has plummeted from what was described as a “13-week high” at the end of March, to new “six-week lows” in recent days. It comes amid growing concerns over the vaccination roll-out in Europe, coupled with “lacklustre” economic developments.
There is some good news for sterling, though, which remains steady and “supported” around the 1.15 mark.
At the time of writing, the pound is currently trading at a rate of 1.1505 according to Bloomberg.
Michael Brown, currency expert at Caxton FX shared his exclusive insight into the exchange rate with Express.co.uk.
He explained: “Sterling-euro did nothing of significance yesterday, besides confirming that strong support and dip demand continues to exist around the 1.15 handle.
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“On the economic data front, the UK Gross Domestic Product (GDP) rose by 0.4 percent in February, missing the market consensus of 0.6 percent.
“However, investors shrugged off the downbeat data and remain optimistic about future growth as the restrictions being eased would result in the pick-up of economic activities in the coming months.”
There are concerns about the impact a major change at the Bank of England could have on the pound in the coming months.
Mr Vessey explained: “The pound was under pressure following the announcement that the Bank of England’s (BoE) chief economist, Andy Haldane, will be leaving the central bank later this year after the June monetary policy committee (MPC) meeting.
While hopes are pinned on May 17 as the date some international travel will resume, this will not be confirmed unless the Global Travel Taskforce deems it “safe” at the time.
Therefore, one travel money expert has warned off switching money before anything is confirmed.
“Many people buy their holiday cash at a time when the rate is favourable even if that is months ahead of their actual trip,” said Paul Brewer, CEO of Currency Online Group.
“In normal times, this is very sensible as it locks in a good rate meaning they get more for their money.
“However, with unexpected changes in the quarantine rules week by week and with so much other uncertainty, this can leave you stuck with thousands of pounds worth of currency you can’t use.”