Pound to euro exchange rate: Sterling ‘rangebound’ – should you wait to buy euros?

The pound to euro exchange rate saw very little movement on Monday. The calendar was bare of data while GBP remains at the mercy of slow-moving Brexit talks and coronavirus. There are currently 328,620 confirmed cases of COVID-19 in the UK.

The pound is currently trading at 1.1088 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.

“It was a rather rangebound day’s trading on Monday for GBPEUR,” said Brown.

“Neither currency went anywhere fast as a result of the quiet data calendar, and near non-existent news flow.

“As such, recent trading ranges were respected.

“We could be in for a similar feel today, despite the slightly busier data docket.

“Investors likely to continue keeping their powder dry ahead of numerous key speeches at the Jackson Hole Symposium towards the end of the week.”

George Vessey, Currency Strategist at Western Union, commented on how the euro has softened after last week’s PMI setback.

“It’s a relatively quiet week on the European data docket this week, but the common currency is still nursing its Friday losses following the surprise setback in industry PMIs,” said Vessey.

“Both the manufacturing and services sectors declined across the bloc, which weighed on recovery hopes and weakened the Euro.

“The sharp reversal of the Euro last week has the potential to extend lower this week, though even a fall to $1.16 should keep the EUR/USD uptrend intact.

“The European PMI numbers were worse than those from the US, but this is likely to do with the timing of lockdowns.

He continued: “Focus is now shifting to some more important economic data this week, such as detailed German GDP results and the German Ifo business climate index both released on Tuesday morning.”

“More European sentiment surveys and consumer confidence data will be released on Friday and if these indicators suggest a steady recovery is still on track, then demand for the Euro may swell once more.

“GBP/EUR remained subdued around the €1.11 handle [yesterday] but closed above a 17-week descending trend channel last week.

“This might be a sign that sterling will build on last week’s rise and challenge the €1.12 threshold this week.”

So what kind of exchange rate will Britons get if they head out to buy travel money today?

The Post Office is currently offering a rate of €1.0705 for over £400, €1.0861 for over £500 and €1.0916 for over £1,000.

The good news for British holidaymakers in 2020 is that, surprisingly, the pound is stretching further this year.

According to the Post Office Travel Money Holiday Money Index of 2020, tourists visiting eurozone countries will have almost £14 more cash in hand.

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