Pound euro exchange rate stuck in ‘tight range’ after fall – ‘EU and UK at loggerheads’

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The pound to euro exchange rate plummeted to “two-month” lows yesterday, and according to one expert, has failed to regain its former position despite a “fading” demand for the euro. It is thought that the turbulence could be due to ongoing concerns over Brexit.

The pound is currently trading at a rate of 1.1573 against the euro according to Bloomberg at the time of writing.

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

“Sterling traded within another tight range against the common currency on Wednesday, though was unable to take advantage of the fact that month-end euro demand appeared to fade as the day went on,” he said.

“Today’s calendar contains nothing notable from either side of the Channel, meaning tight ranges are likely to persist.”

George Vessey, currency strategist at Western Union Business Solutions, meanwhile, has hinted at some disruption between EU and UK officials which could be impacting traders’ decisions.

“Sterling fell to its lowest point in over two weeks against the Euro,” he said.

“With a lack of any fundamental analysis from the UK, the fall could be attributed to the positive economic news from Germany and broader optimism about easing lockdown restrictions on the continent.

“This helped the European currency catch up with the pound by some cross-driven weakness from a strong move into the EUR from GBP.

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“It’s also no coincidence that the pound remains under pressure following European Union (EU) President, Ursula von de Leyen’s comments as the EU and the UK remain at loggerheads over the Northern Irish protocol.”

For Britons heading to Europe on holiday in the coming weeks, the sudden drop could be worrying.

Currently, Britons are able to travel to green list countries without quarantine on their return home.

They must also follow the entry requirements of each nation they enter – some of which mean UK arrivals are only permitted for “essential” reasons.

One of the most accessible and popular destinations which has made it onto the list so far is Portugal.

However, with the likes of Spain and Greece remaining on the amber list, but welcoming back Britons, some hopeful holidaymakers are swapping 10 days of quarantine at home in return for a break in the sun.

Regardless of where Britons are thinking of jetting off to, one travel money expert has warned holidaymakers should avoid swapping their money until they are certain their travel plans will go ahead.

“While it’s excellent news international travel is opening up, the proposed traffic light system will mean there will still be an element of disruption this summer, both to travel companies and consumers,” said James Lynn, co-founder and CEO of Currensea.

“Extra caution and careful planning will be really important when it comes to planning holidays this year – and keeping abreast of the latest updates will be key.

“Financial safety when travelling must also be top of mind for consumers. Sudden changes and cancellations, which remain likely could put travellers at risk if the right precautions aren’t taken.

“Check the refund policy on flights or accommodation before you book to ensure that the company will refund you fully, in cash, rather than with a voucher.

“If a company refunds you with a voucher and then cancels on you or goes bankrupt this could leave you unprotected and unable to get your money back.

“As well, if possible, stay away from paying a deposit or only if it is a very low deposit required close to the time of the trip so you can make a decision as you approach your travel date.”

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