The pound to euro exchange rate has been mostly “rangebound” in recent weeks, nearing the 1.17 mark. Though there were some concerns it may falter following yesterday’s Bank of England policy announcement, in the end, sterling emerged rather unscathed.
The pound is currently trading at a rate of 1.167 against the euro according to Bloomberg at the time of writing.
Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate with Express.co.uk.
“Sterling had two attempts to convincingly break the €1.1710 resistance yesterday, but failed both times, settling back into the top end of the range that we have now traded within for some time,” he said.
“Yesterday’s BoE decision was as much of a non-event as the market had been expecting, thus was largely ignored.
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Under Prime Minister Boris Johnson’s roadmap out of lockdown, should the data provide “satisfactory”, holidays could resume from May 17.
The Government is to reinstate its Global Travel Taskforce from April.
They will determine whether it is safe and possible to resume international leisure travel.
For now, only those with “essential” reasons are permitted to travel abroad and must fill out a “Declaration Form for International Travel” which will be checked by airlines.
Despite the rules, it doesn’t seem to have dampened consumer confidence, with Skyscanner and easyJet both reporting an uptick in holiday bookings since the announcement.
While it may be tempting to exchange euros in advance while the rates are favourable, one expert has suggested this might not be a wise decision.
James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.”However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.
“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the pound has improved even more significantly than the level it is at today.”
For those who need to exchange their travel money now, most high street vendors are closed.
However, some, including the Post Office Travel Money, are offering a click and collect service allowing customers to purchase their foreign currency online.
The Post Office is currently offering a rate of €1.1252 for amounts of £400 or more, and rates of €1.1473 for amounts of £1,000 or more.