The pound to euro exchange rate slumped dramatically on Friday. Brexit is once again to blame as trade negotiations failed to advance to an agreement. The coronavirus pandemic also remains a focal point for investors.
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There are currently 4.7 million cases of the deadly virus worldwide.
Trailing only behind the USA and Russia, the UK has nearly 245,000 confirmed cases.
Investors’ attention is on the country’s sluggish economy as lockdown measures begin to be eased.
This week, experts have said, investors will receive a “full health-check” on the UK economy.
The pound is currently trading at 1.1188 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.
“Sterling crumbled to six-week lows against the common currency on Friday,” said Brown.
“[This came] after the latest round of post-Brexit trade negotiations broke up without any progress towards an agreement.”
Brown continued: “Markets [also] continue to price in additional stimulus from the Bank of England.
“This week, while the political situation will remain in focus.
“Investors will receive a full health-check on the UK economy; with inflation, labour market, retail sales and PMI surveys due throughout the week.”
Countries around the world are easing lockdown restrictions.
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Many have said they are looking to reinstate tourism as soon as they can.
However, Britons are still unable to travel abroad.
Currently, the UK government only permits “essential” travel.
The latest announcements offered little hope to holidaymakers.
Nevertheless, yesterday, the managing director of East Midlands Airport said she is “incredibly hopeful” flights will be up and running in July.
Karen Smart told the BBC today that regional airports are pushing the government to ease travel restrictions.
But the airport boss did warn it could take years for travel to return to normal.
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