The pound to euro exchange rate was successful this week. The GBP rose to a whopping nine month high yesterday and has continued to build on it today. The triumph of the UK coronavirus vaccine launch helped push the pound up.
Looking ahead to today, experts have said the calendar is “calm” which is likely to further boost the GBP.
The pound is currently trading at 1.1474 against the euro, according to Bloomberg.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk this morning about the latest exchange rate figures.
“The pound sterling continues to do well against the euro and posted new nine-month highs yesterday,” Brown said.
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“The market continues to hold on to the impressive pace of Covid vaccination in the UK and recent hawkish tones from the BoE.
“Today’s calendar is rather calm again and should benefit the pound in the markets that are currently strongly driven by dynamism.”
George Vessey, British currency strategist at Western Union Business Solutions, commented on the vaccine’s impact on the pound.
“The introduction of vaccination in the UK is the main driving force behind sterling’s positive run, coupled with reduced negative interest rate expectations and increasing global risk appetite as expectations for a faster recovery rise,” he said.
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“The focus is on the brighter future, reflation trading and stimulating economic growth, which will continue to favor risk-weighted assets, including commodity and emerging market currencies, but also risk-correlated currencies like GBP.”
Turning to the week ahead, Vessey said, “In relation to this week’s data, UK inflation will be released on Wednesday and is expected to slow down.
“The first signs of how February has been doing on the activity front will be seen in Flash PMI data on Friday, and retail sales and public finances in the UK will also be scrutinized on Friday.”
Commenting on the events in the Eurozone, Vessey said: “One of the main issues in Europe is the fact that the EU is still far behind its competitors in introducing vaccines, which means that the relaxation of restrictions across Europe is also slower and therefore slower will be slower The economic recovery will be delayed.
What does all of this mean for your vacation and your travel money?
The good news is that travel money providers are offering much cheaper rates than they were before the exchange rate hike.
Post Office Travel is currently offering a price of € 1.1026 for over £ 400, € 1.1186 for over £ 500 or € 1.1243 for over £ 1,000.
However, experts warn against buying travel money in these uncertain times when travel is banned for Britons.