Pound to euro exchange rate: Sterling at 'bottom of trading range' but gains are possible

Pound to euro exchange rate: Sterling at 'bottom of trading range' but gains are possible

Sterling is doing slightly worse than yesterday, but still remains around the 1.15 handle. This is at the bottom of the trading range, according to one expert.

Mr Brown said: “Sterling softened a little against the euro yesterday, though continues to find strong support around the 1.15 handle, which is the bottom of the trading range that has been in play since mid-March.”

The currency expert mentioned that Private Mortgage Insurance surveys are taking place today within the financial calendar, but these are not expected to have an impact on the exchange rate.

He explained: “Today sees the release of ‘flash’ PMI surveys, which are unlikely to significantly move the needle, given expectations of similar economic performance on either side of the Channel.”

Sterling has struggled all week, despite experiencing its best day of the month on Monday.

Since Monday, the pound has continued to steadily decrease against the euro.

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Yesterday, Mr Brown said: “Sterling endured a rather tedious day of trade yesterday, treading water just shy of the 1.16 handle for most of it, with the cross lacking impetus to extend the gains made earlier this week.”

George Vessey, UK Currency Strategist at Western Business Solutions, also commented on the pound to euro exchange rate yesterday, mentioning the pound’s performance compared to the dollar, as well as his optimism about sterling’s possible gain over the upcoming weeks.

Mr Vessey said: “The British Pound bounced off multi-week lows against several major currency pairs at the start of this week but has struggled to gain upside traction over the past couple of days.

“GBP/USD has tested the $1.40 resistance zone four times over the past two months and recoiled, but a break higher is still possible given the technical and fundamental landscape.

“The underlying fundamental support for sterling is the UK’s swift and successful vaccine rollout that is allowing the UK economy to gradually reopen.

“This sets the stage for a strong economic rebound in this second quarter of this year, making the flash PMI figures this Friday all the more important.

“If global risk appetite remains elevated amidst ongoing monetary and fiscal support, then the continued rotation into riskier assets should also support the risk-correlated pound.

“The technical set up looks GBP-positive too with upward sloping moving averages suggesting the path of least resistance is higher.

“If GBP/USD does break the key $1.40 level, this may drag other sterling-currency pairs higher too.

“GBP/EUR hovers below the €1.16 handle this morning but could challenge the €1.17 level again this quarter if investors do resume sterling buying.”

So, what does all this mean for your travel money?

Despite foreign travel being off the cards until May 17, when some countries may reopen their borders to tourists, many Britons have already been booking holidays and flight tickets over the past few weeks.

However, experts have warned against exchanging travel money just yet due to the unpredictability of the coronavirus.

James Lynn, co-CEO and co-founder of travel card Currensea, said: “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.”

Published at Fri, 23 Apr 2021 06:57:13 +0000