Scotland 'would need own currency if independent' says expert
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On Wednesday, the pound to euro exchange rate rose for the fifth day in a row. This was due to the success of the UK’s COVID-19 vaccine rollout, which may lead to “a faster economic reopening” of the country, according to experts.
However, since Wednesday, sterling has remained in more or less the same place.
At the time of writing, the pound stands at 1.1677 against the euro, according to Bloomberg.
This is slightly lower, yet still very similar, to yesterday’s figure.
Yesterday morning, sterling stood at €1.1689.
Michael Brown, currency expert at Caxton FX, spoke exclusively to Express.co.uk about today’s pound to euro exchange rate.
He said: “Sterling is still yet to break above the 1.17 handle, with the cross remaining fairly subdued, and largely shrugging off yesterday’s European Central Bank meeting.
“Today’s calendar is busy, though the market continues to lack care for economic releases, and G10s will likely be driven by the bond market once again,” Mr Brown added.
The currency expert referred to the Governing Council of the European Central Bank’s meeting, which met in Frankfurt yesterday to discuss monetary policy.
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Governing Council meetings are important dates in traders’ calendars as they set the official interest rates for the eurozone.
Mr Brown said yesterday that sterling was “lacking any fresh impetus” to break through the 1.17 “barrier”, but he speculated that the Governing Council meeting might change that.
He: “Today’s ECB meeting may provide the cross with said impetus, despite no policy changes being expected, if policymakers once again attempt to jawbone the common currency.”
But sterling has still not yet risen beyond the 1.17 mark.
However, Mr Brown was on Wednesday hopeful that sterling could be likely to climb further in the coming days.
He said: “The pound continues to benefit from the UK’s impressive covid vaccination programme and hopes that it will lead to a faster economic reopening.”
George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his analysis on Wednesday.
He explained: “Central banks like the US Federal Reserve and the Bank of England have downplayed the rise in bond yields thus far, whilst the European Central Bank (ECB) is likely to at least verbally intervene, or possibly increase asset purchases this Thursday to cool the bond market rout.
“Investors are becoming more optimistic about the global economic rebound,” Mr Vessey added.
So, what does this mean for your travel money?
The Post Office is offering slightly better pound to euro rates today then yesterday, currently giving a rate of €1.1260 over £400, €1.1424 over £500, and €1.1482 over £1000.
Although it can be tempting to buy travel money at this time, James Lynn, co-CEO and co-founder of travel card Currensea, warned against this while foreign travel still remains banned for Britons.
He said: “Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.”
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