The pound to euro exchange rate dropped yesterday to a fourth-month low after trading flat last week. Coronavirus continues to serve as a barometer for GBP’s movements. Cases continue to rise in the UK, and there are 321 people who have tested positive for the deadly virus in this country.
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Looking ahead at today, market attention will remain on the epidemic, experts have said.
Meanwhile, the final estimate of Q4 eurozone GDP is not likely to spark much movement.
The pound is currently trading at 1.1482 against the euro, according to Bloomberg at the time of writing.
Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures.
“Sterling fell to four-month lows against the euro on Monday, briefly falling below the €1.14 handle,” said Brown.
“[This came] despite safe-haven flows being the order of the day as coronavirus concerns continued to roil markets.
“Today, the final estimate of Q4 eurozone GDP is unlikely to result in any significant volatility.
“Attention [is] set to remain squarely focused on the coronavirus epidemic, and escalating potential for a co-ordinated global policy response.”
Sebastien Clements, currency analyst at OFX, shared his expertise on yesterday’s stock market fall.
He said on Monday: “This morning, a blend of exogenous shocks have sent the markets into a frenzy on what may only be described as ‘Black Monday’.
“A combination of a Russia vs Saudi Arabia oil price war, a crash in equities, and escalations in Coronavirus woes have created a killer cocktail to worsen last week’s hangover.
“On the currency front, safe havens like the Yen and Swiss Franc are thriving while the US dollar plummeted.
“The pound has moved from lows of 1.27 against the US dollar last week, to just below 1.32 at European open on Monday morning.
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“Governments now have no choice but to turn to monetary/fiscal stimulus to combat and stabilise the volatility in international markets before irreversible damage could see us slip into a premature economic crisis.”
So what does this all mean for Britons heading off on holidays and looking to buy travel money?
The Post Office is currently offering a rate of €1.1080 for over £400 and €1.1322 for over £1,000.
Interestingly, research has shown that Britons are not stalling holiday plans altogether as coronavirus shows no sign of disappearing.
Travel marketing and communications firm, Finn Partners commissioned a nationwide survey which revealed that 44 percent of British consumers are still happy to book a holiday if there is a great deal to be had in spite of the negative COVID-19 headlines sweeping the country.
The survey of 1,000 Brits revealed as many as 61 percent confirmed that publicity around coronavirus would not stop them from making new holiday bookings.
Importantly, 68 percent of respondents said they would happily book their holiday if they could change it at no extra cost and avoid losing money-making flexibility the key priority for the travel industry right now.
The data also revealed that the older generation is resolute when it comes to booking holidays.
Seventy percent of those over 60 are continuing to book despite the publicity, along with 68 percent of 45 – 59-year-olds and 61 percent of 30 – 44-year-olds.
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