The pound to euro exchange rate “softened” yesterday. According to experts, the pairing reached the 50-day moving average before slipping lower. Looking ahead at today, coronavirus developments will likely be in the spotlight.
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The UK currently has 291,691 confirmed cases of the deadly virus.
The country previously had the third-worst highest number of cases globally.
However, Mexico, Chile, Peru, Russia, India, Brazil and the US all now have more cases than the UK.
The pound is currently trading at 1.1062 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 softened against the euro yesterday,” he said.
“[This was] a largely technically-led move, with the pair kissing the 50-day moving average before sharply pulling back lower.
“This implies that the upside momentum is not yet there to push the pair to further gains.
“Today, this morning’s UK GDP figures are a lagging indicator so will likely be ignored, and attention will remain on the latest coronavirus developments.”
Travel money providers have started back up again in recent weeks as travel kicks back into gear.
Holidaymakers still need to be careful when buying holiday money.
It is wise to keep an eye on the exchange rate to make sure you are buying holiday money at an advantageous time rather than at the last minute.
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“Currency must play a pivotal role in holiday planning, and savvy holidaymakers should be keeping a very close eye on currency and its reaction to the latest political events,” Ian Strafford-Taylor, CEO of currency expert FairFX said.
Previous research from currency provider WeSwap found that nearly half of all Britons find and buy their foreign currency in the space of one day.
This leaves them vulnerable to forces beyond their control that dictate the strength of the pound.
Tourists should also avoid buying currency at the airport.
According to Martin Lewis’s Money Saving Expert website: “Whatever you choose, never buy your currency at the airport.
“Rates are hideous, as you’re then a captive audience.
“If you’ve left it late, at least order ahead for pickup at the airport, as rates are much better than simply walking up to a bureau.”
It is also well worth choosing a country where the pound is likely to stretch further.
“By choosing a destination where the pound is strong, the amount of money you need to enjoy yourself while you’re abroad will decrease, allowing you to see more of the world, for much less,” explained Strafford-Taylor.
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