The pound to euro exchange rate slumped dramatically on Friday as the trading week came to an end. Coronavirus and the economic recovery continue to impact the rise and fall of sterling. There are currently 305,803 confirmed cases of the deadly virus in the UK.
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Sadly there have been 42,717 deaths, with the UK having the third-highest death rate for coronavirus in the world after the USA and Brazil.
Indeed, developments in the USA have affected the pound’s movements.
Its drop on Friday follows concerns regarding the economic re-opening after a hike in virus infections in America.
Today, the focus will remain on the number of infections, experts have said.
Investors are continuing to keep their eye on the possibility of another wave.
The pound is currently trading at 1.1055 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 this morning.
“Sterling struggled on Friday, dipping to a fresh MTD low against the common currency,” he said.
“The pound came under pressure amid a broad deterioration in risk appetite after signs that the economic re-opening may be under threat in the US after a resurgence in coronavirus infections.
“Today, with a rather sparse data calendar, attention will remain on the latest Covid infection numbers as investors monitor the risk of a second wave.”
The government continues to advise against non-essential foreign travel so purchasing foreign currency at this time is not recommended.
The COVID-19 Exceptional Travel Advisory Notice states: “The Foreign & Commonwealth Office currently advises British nationals against all but essential international travel. This advice is being kept under constant review.”
Many are worried that the government’s strict stance will badly affect the tourism industry.
Ralph Hollister, a travel and tourism analyst at data and analytics company GlobalData, commented: “Delayed reaction to slow the spread and buffer the economic impact of COVID-19, combined with current rules regarding social distancing and quarantining is significantly delaying the recovery of the UK travel sector.
“The UK now seems to be obstructing progress even further by opting out of an information-sharing scheme led by the EU.
“The failure to adhere to this informative idea could mean that Great Britain will become further isolated from its European neighbours.
“This reluctance may deter countries from attempting to strike up conversation around setting up air bridges with the UK.”
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He added:“A European commission spokesman stated the UK was not included as the government asked not to be involved in the project.
“Many countries within Europe have now reopened borders to allow travel within the EU Schengen Zone, without implementing quarantines at either side. The UK seems to be falling behind as other tourism economies begin to re-start.
“The online platform created through the data-sharing project is supposed to ease uncertainty by providing European travellers with the appropriate information to confidently make their plans and stay safe during their trip.
“According to GlobalData’s week 10 (May 26-31) consumer survey, 43 percent of global respondents are still ‘extremely concerned’ about the outbreak of COVID-19.”
Hollister continued: “This platform will serve to decrease some of this concern, whilst helping to maximise tourist flows.
“Tourism leaders in the UK have already been voicing their concerns regarding recent government actions.
“The UK’s compulsory 14-day quarantine for inbound travellers has been met with fierce criticism.
“Facing considerable losses should this measure last a year – as initially planned – British Airways, easyJet and Ryanair have applied for a judicial review of this measure at the British High Court, a request that would benefit from support by other major players in the tourism sector.”
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