The pound clawed back some of its strength against the euro yesterday, settling into a comfortable position above the 1.15 handle. With no major announcements anticipated today, as the Eurozone remains mostly quiet, the GBP is likely to start off the month of May on a positive note.
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The pound is currently trading at a rate of 1.1462 against the euro according to Bloomberg at the time of writing.
Michael Brown, Currency Expert at Caxton FX, spoke to Express.co.uk to provide exclusive insight into the current exchange rate.
He said: “Sterling gained ground against the euro yesterday, breaking above the 1.15 handle, as month-end buying of the pound saw the currency remain well-supported throughout the trading day.
“Looking ahead, trading conditions are likely to be relatively quiet today, given the closure of eurozone markets for Labour Day, and the sparsely populated data calendar.”
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Yesterday the European Central Bank (ECB)meeting determined some measures that would be put in place to try and help the euro during these unprecedented times.
Christine Lagarde, ECB president, said the “profound deterioration in labour conditions” was leading the eurozone into something akin to a “free fall”.
However, in hopes of restarting the economy sooner rather than later, many countries across the continent have begun to slowly relax lockdown measures.
In Spain, some non-essential workers, including those in manufacturing, have been allowed to return to work.
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In France, schoolchildren are returning to lessons as of May 11.
Retail stores are also set to reopen, and public transport will resume.
For now, restaurants and cafes remain closed, but Prime Minister Édouard Philippe suggests the country is hesitantly edging towards normalcy, saying: “We have to live with the virus.”
Italy is allowing its citizens to visit their relatives in small numbers and is also planning to restart a number of industries including manufacturing.
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Denmark and Norway relaxed measures last week, following suit of neighbouring Sweden which took a more relaxed approach to the pandemic.
What impact this will have on the pound to euro exchange rate remains unseen.
In the UK, some retail shops and smaller take out food services are gearing up to reopen their doors.
Prime Minister Boris Johnson urged Britons to persevere with lockdown, suggesting that in doing so we will surpass the worst infection cases.
However, he has indicated that he will set out a “comprehensive” plan next week.
In it the reopening schools and methods of restarting the economy will be explained to Britons.
Britons currently are unable to go on holiday, as the Foreign and Commonwealth Office (FCO) is urging against all non-essential travel for an indefinite period of time.
Despite this, travellers should hold onto their euros.
This is mostly because most travel money services have shut their doors temporarily, and shopping around for the best rates is near-impossible.
“If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then,” advises Ian Strafford-Taylor, CEO of Equals (formerly known as FairFX).
Would-be holidaymakers who purchased travel money cards, such as those on sale from the Post Office, can still be used in the UK in the same way as a credit or debit card.
“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether,” adds Strafford-Taylor.
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