The exchange rate from pound to euro experienced a “significant weakening of risk appetite” on Wednesday, experts said. Even so, the GBP continues to perform well. Coronavirus continues to be a barometer of sterling movements, with the introduction of the vaccine in the UK currently being a boost.
That will continue to be the case today as “the pandemic continues to take center stage”.
The pound is currently trading at 1.1297 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.
“Despite a marked weakening in risk appetite yesterday, the pound has held up admirably against the common currency,” Brown said.
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“It benefited from the UK’s continued outperformance on Covid vaccinations and the ECB’s attempt to lower the euro.
“Today, with little on the calendar, attention will continue to be on the pandemic and whether or not yesterday’s dip is bought on Wall Street.
“The key test for the pound sterling is whether it can go above the 1.13 support.”
What does all this mean for your vacation and your travel money?
DO NOT MISS
Post Office Travel is currently offering a price of € 1.0895 for over £ 400, € 1.1053 for over £ 500 or € 1.111 for over £ 1,000.
Unfortunately, the thrill of buying travel money for the vacation is unlikely to be felt anytime soon.
Yesterday the government announced that it would further restrict travel that is not absolutely necessary. Some experts said traveling abroad was too much of a risk.
As a result, some Brits may be stuck with vacation pay that they can no longer use after canceling their trip.
What are the best things to do with foreign currency – should you exchange or keep it?
James Lynn, co-CEO and co-founder of Currensea, advises holding onto your money.
“It might be tempting to exchange any leftover travel money or even take out foreign currency in anticipation of a future vacation while the exchange rate is cheap,” he said.
“I would advise against it, however. In reality, market movements are often more marginal than they appear.
“Especially during these volatile times, it is safer to keep your money in your UK bank account than to buy or convert money and earn vacation pay.
“As soon as we can travel again, it will mean the end of the COVID bump, and I expect the pound has improved even more than it is today.”
He added, “The absolute no-go is to withdraw money from an airport office, which can result in being hit at an exchange rate of up to 10 to 20 percent when exchanging or buying back cash.”
