The pound to euro exchange rate is likely to have a “quiet day” as the world waits for the next elected leader of the new world to be revealed. Once the winner is revealed, it’s likely to have a signifiant impact on GBP. While 2016’s election results were announced early on, this year has been very different with more Americans voting by mail.
He said: “Sterling gained marginally against the euro yesterday, reclaiming €1.11, as the market reacted positively to a larger-than-expected increase in asset purchases from the Bank of England, alongside an extension of the furlough scheme through Q1 2021.
“Today, while the presidential election remains the focus for markets more broadly, the pair could be in for something of a quiet day, with post-Brexit trade talks now on ice until next week, and the data docket rather barren.”
Chris Beauchamp, Chief Market Analyst at IG, commented on the US election and the state of the UK economy.
He said: “Stock markets continue to take the US election in a positive frame of mind, and with the Bank of England (BoE) throwing more QE into the fray, the second central bank to do so in a week, the outlook for stocks continues to brighten.
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“Last week’s selloff looks more and more like pre-election jitters, a bout of nervousness that has been reversed even more swiftly than it appears.
“It is true that the US election is yet to be officially decided, but Biden seems likely to cross the 270 vote threshold in coming days, potentially rendering Trump’s legal challenges irrelevant, and with this bump in the road removed, stock markets can rally once more.”
Beauchamp explained that the BoE’s outlook for the UK’s economy is “understandably grim”.
He added: “But as in the US the real boost will come from fiscal stimulus, and at least here there is some good news thanks to the chancellor’s decision to extend furlough.”
He continued: “The costs of the virus continue to mount at an astonishing speed, but given the alternative markets have decided they are the lesser of two evils, hence the continued strength in risk appetite.
“Even supermarkets, the big winners of lockdown no. 1, are not immune from the current tough climate, as Sainsbury’s revealed this morning.
“For the share price, it looks like 210p is far enough in this current climate, given the expected pressure on consumer spending in the weeks and months ahead.
“Tesco has managed to avoid a bigger loss this morning however, perhaps a beneficiary of its broader reach and its greater value proposition that might boost its sales in months to come.”
So what does all this mean for travel money?
During England’s national lockdown, travelling away from home, including internationally, is restricted except in limited circumstances such as for work or for education.
Britons with unused travel money may not be able to get the best deals as “non-essential” shops close.
Those with travel money who are looking to go abroad post-lockdown may want to keep their currency for their next holiday.
The Post Office still has a click and collect service in place with online rates available.
The Post Office is offering 1.0697 for amounts over £400, 1.0853 for amounts over £500 and 1.0908 for amounts over £1000.
Published at Fri, 06 Nov 2020 08:12:42 +0000