The pound to euro exchange rate has broken through the 1.17 handle after weeks of rangebound trading. The “fresh highs” are some of the highest in more than a year.
Sterling is currently trading at a rate of 1.1703 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Expess.co.uk, Michael Brown, currency expert at Caxton FX, shared his insight into the last exchange rate news.
“Sterling finally broke out of its recent range against the euro yesterday, rallying to fresh 13-month highs as the week got underway, with the pound benefitting from supportive month-end flows, and bucking the broader trend of G10 weakness,” he explained.
“Today, another quiet calendar is in store, with traders looking to see whether the pound can extend on yesterday’s advance.”
READ MORE: Pound euro exchange rate nears 1.17 mark
According to George Vessey, UK currency strategist at Western Business Solutions, many investors are looking towards economic recovery despite new rises in coronavirus cases in some places.
“Despite the growing fears of a third wave of infections, many investors are still looking further ahead to the recovery phase, as global demand for German, Dutch and French goods has increased according to various sentiment surveys last week,” he said.
“Germany recorded its largest expansion in manufacturing PMI on record and its business climate index jumped to 2019 highs.
“This week, focus turns to flash inflation and flash PMIS, which are released on Wednesday and Friday respectively.
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“More sentiment surveys will also be released on Tuesday, but amidst extended lockdowns and the supply chain challenges exacerbated by the Suez blockage, Europe’s industrial sector and confidence could take a hit.”
While the latest exchange rate may seem like a prime time to exchange travel money, ongoing restrictions mean the future of jetting off overseas remains uncertain.
Prime Minister Boris Johnson is due to reveal more information about the state of international travel on April 5.
On April 12, the Global Travel Taskforce will resume meetings to discuss the possibilities of how travel can be done safely and successfully.
Despite this, travel firms such as Skyscanner have reported an uptick in holiday bookings since the Prime Minister announced his “roadmap” out of lockdown.
Yet, despite how encouraging the exchange rate may seem, experts say it might not be the best time to change pounds into euros.
“Although countries have said they will be opening their doors to UK visitors, consumers must be cautious before exchanging money at this stage,” James Andrews, senior personal finance editor at Money.co.uk told Express.co.uk.
“International travel is currently prohibited by law until May 17 earliest.
“Until the Government has confirmed that you will be allowed to travel, consider if you need to exchange travel money right away.”
Instead, the travel money expert recommends waiting until there has been confirmation from the Government, before swapping currency.
“To get the most for your money, make sure you don’t just focus on the exchange rate alone, you need to look at the entire package,” he explained.
“The deal with the best exchange rate isn’t necessarily the cheapest for you – there could be hidden costs like commission or delivery charges that push your actual spend above other deals with a lower exchange rate.
“When you’re deciding which deal to select, make sure you factor these additional costs into your calculations.”