Pound to euro exchange rate trading in ‘tight range’ but market lacking ‘impetus’

Matt Hancock: Tough rules needed on international travel

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The pound to euro has been trading in a tight range in recent weeks. Today, with Boris Johnson to unveil his plans on whether or not to ease further restrictions on June 21, the exchange rate continues to trade in a tight range, according to experts.

The pound is currently trading at a rate of 1.1660 according to Bloomberg at the time of writing. 

This is a slight decline on Friday where it was trading at 1.1628.

Despite the loss, the exchange rate remains “in a tight range”.

Michael Brown, currency expert at Caxton FX, shared his insight into the exchange rate with Express.co.uk

He explained: “Sterling-euro continues to trade in a tight range just north of the €1.16 handle, with the market continuing to lack impetus to make a decisive move in either direction – broadly mirroring the broader G10 market, in fact.

“With a quiet data docket in store today, the market is likely to do little more than mark time once more.”

Last week, experts warned that the sterling was beginning to face “pressure” amid concerns that the final stage of Boris Johnson’s roadmap out of lockdown would be delayed. 

George Vessey, UK currency strategist at Western Union Business Solutions said: “GBP had been under pressure following expectations that the June 21 ‘freedom day’ will be pushed back.

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“Indeed, Chancellor of the Exchequer Rishi Sunak is willing to accept a delay of up to four weeks to the final stage of England’s reopening roadmap.

“Sunak has in the past been regarded as more keen to lift lockdown constraints than some cabinet colleagues.

“However, that position has since been clarified, that he was more concerned that when restrictions are lifted, the move can be permanent.”

Plans out of lockdown will be announced by the Prime Minister today.

What does this mean for travel money?

For those looking to jet off on holiday to green list countries, there remains uncertainty about international travel.

It comes after Portugal was added to the amber list after first being added to the green list. 

Ian Stafford-Taylor, CEO of travel money specialist FairFX said: “Britons hoping for an overseas break should keep an eye on any announcements and watch the pound closely to make sure they’re getting more bang for their buck by securing the best rates available for their travel money.”

This is most likely to be last minute for many with travel plans changing constantly. 

James Lynn, CEO and co-founder of Currensea also explained that Britons should only swap their foreign currency once they are certain their travel plans are going ahead. 

Post Office Travel is currently offering a rate of €1.1229 on orders over £400.

If customers place an order of more than £500, they can get a rate of €1.1393 at the time of writing.

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