Travel money: Post Office introduce multi-currency pre-paid card
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The pound to euro exchange rate has “traded well” in recent hours, experts have said. GBP even toyed with hiking over the “€1.15 mark” but still remains just shy of that figure. Sterling’s success has been contributed to optimism following the success of the UK’s Covid vaccine rollout.
New inflation data is out today but is unlikely to impact the market, experts said.
However, a shift over €1.15 could well be possible “in the coming day”.
The pound is currently trading at 1.1494 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 has traded well against the euro over the last 24 hours or so,” said Brown.
“[It tested] the €1.15 mark before pulling back a little, as the pound continues to benefit from the UK’s covid vaccination programme and a comparably hawkish BoE.
“This morning’s inflation data should have little impact on the market, which remains heavily momentum-driven.
“With this in mind, another test of €1.15, or even a break above, is likely in the coming day.”
George Vessey, UK currency strategist at Western Union Business Solutions, also shared his insight into the pound euro exchange rate.
“Thriving optimism across financial markets is helping the risk-sensitive British Pound climb higher against its currency peers,” he said.
“The UK has vaccinated over 15 million people now and its relatively successful rollout is increasing hopes of UK economic restrictions easing sooner than expected.
“This is GBP-positive for now, but if it results in another wave of infections and another nationwide lockdown, the pound will likely depreciate and could erase year-to-date gains.”
Looking at this week, Vessey said: “Data-wise this week, UK inflation is released on Wednesday and is forecast to slow.
“The first signs of how February fared on the activity front will be revealed by flash PMI data on Friday and UK retail sales and public finances will be put under the microscope on Friday too.”
As for what’s happening in the Eurozone, Vessey commented: “One of the main talking points in Europe is the fact that the EU is still far behind its peers in the vaccine rollout, meaning the easing of restrictions across Europe will also be slower and therefore the economic recovery will be delayed.
“This presents a downside risk to the Euro, especially against GBP.
“Eurozone fourth-quarter GDP results drop in on Tuesday with German sentiment surveys.
“The European Central Bank will publish the minutes of its latest monetary policy meeting on Thursday and flash PMIs drop in on Friday.
“The Euro will likely benefit from improved global risk appetite, but GBP/EUR could extend its recent uplift beyond the €1.15 mark given the vaccination differential between the EU and UK.”
So what does all this mean for your holidays and travel money?
Post Office Travel is currently offering a rate of €1.1059 over £400, €1.1219 for over £500, or €1.1277 for over £1,000.
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