According to experts, the exchange rate from pound to euro is being traded “calmly”. It may be Thursday this morning, but it stays within reach – and shows little sign of shifting beyond that. Looking today, new data is unlikely to “move the needle significantly”.

Brown added, “Today’s UK retail sales are unlikely to move the needle much, which means we may well be treading water again over the weekend.”

Coronavirus continues to be a barometer of sterling movements.

The success of the UK’s vaccine rollout has gone a long way in boosting the GBP.

UK currency strategist George Vessey for Western Union Business Solutions shared his insight into how vaccination rates have affected the exchange rate across Europe.

“As market participants continue to follow increasing infections and restrictions in Europe that may disrupt the UK’s recovery roadmap, recent tensions over access to coronavirus vaccinations have also been on the radar and negatively impacted risk sentiment,” he said.


“EU threats to stop vaccine exports have not only caused a stir among UK officials, but some EU member states fear that tighter export restrictions could damage the EU’s reputation as a reliable source in the global medical supply chain.

“On Wednesday evening, however, both the UK and the EU tried to calm tensions ahead of today’s European Council on the issue.”

“From a market perspective, this could be seen as Euro-positive if Europe receives more vaccines and Britain’s access is blocked.”

Vessey added, “GBP / EUR has slid from its 13 month highs and is on track for its biggest weekly decline in 2021.”

What does this mean for your vacation and your travel money?

Post Office Travel is currently offering a price of € 1,1159 over £ 400, € 1,1321 over £ 500 or € 1,1379 over £ 1,000.

While it may be tempting to buy vacation pay while the prices are good, it is not advisable to buy them while there is still so much uncertainty about overseas travel this summer.

Traveling abroad is currently illegal with significant fines going into effect starting Monday for those who depart without a “reasonable apology”.

In addition, quarantine and Covid tests are mandatory upon arrival in the UK.

Experts advise waiting for the volatility to subside.

James Lynn, Co-CEO and Co-Founder of Travel Card Currensea, said: “It might be tempting to take foreign currency out in anticipation of a future vacation while the exchange rate is cheap.

“However, I would advise against it. In reality, market movements are often more marginal than they appear.

“Especially during these volatile times, it is safer to keep your money in your UK bank account than to buy or exchange vacation pay.

“As soon as we can travel again, it will be the end of the COVID bump, and I expect the pound has improved even more as a result.”

“In addition, with regards to your consumer rights, using a travel card is always a safer and cheaper option than using cash.”