Pound euro exchange rate: The pound is trading at 1.1678 against the euro (Image: Bloomberg) 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, Western Union Business Solutions, also shared his insight.
“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, he said.
Trending
“Last week, the British Pound suffered its worst week against the US Dollar this year as the world’s reserve currency gained momentum across the board, said Vessey. Sterling could fall further against the dollar but may climb higher against the Euro in the short term. Bank of England Governor Andrew Bailey has so far not intervened in the bond market turmoil despite 10-year UK yields having quadrupled this year. Policymakers view it as a natural reaction given the UK’s lead in the global vaccination race, which has also been GBP constructive. Sterling could fall further against the dollar but may climb higher against the Euro in short term (Image: Getty Images)
Trending
James Lynn, co-CEO and co-founder of travel card Currensea, warmed against this while travel abroad remains banned in the UK
He said: 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. Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
Pound euro exchange rate: During this volatile time, it’s safer to keep hold of your money (Image: Getty Imsges)
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.
| UPDATED: 08:26, Tue, Mar 2, 2021
Link copied Sign up for FREE now and never miss the top Royal stories again.
SUBSCRIBE Invalid email
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
The pound to euro exchange rate is currently sitting above the 1.5 handle, with Rishi Sunak’s Budget announcement set to be unveiled on Wednesday. Though it started the week on a high, GBP has lost some of its strength overnight due to “changing dollar demand in the market”.