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Pound to euro exchange rate: GBP slumps further amid desperate EU economic battle

The pound continued to lose ground against the euro on Wednesday as markets continued to react to the growing EU-debt which has come as countries rally to attempt to save economies amid a mass lockdown. Though many European countries are now emerging from lockdown, the aftermath of coronavirus on the economy has caused concerns of an “over-reliance on the European Central Bank (ECB)” according to Reuters.

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The pound is currently trading at a rate of 1.1130 according to Bloomberg at the time of writing.

Currency Expert Michael Brown of Caxton FX spoke to Express.co.uk to share his expert insight on the currency exchange rate.

He explained: “Sterling lost ground against the common currency on Wednesday, as investors continued to react to proposals for the issuance of common EU-wide debt, which could support closer fiscal integration of the bloc.

“Today, the latest round of PMI surveys will be in focus, as the market continues to grapple with the economic impact of the coronavirus pandemic.”

The pound plummeted to a six-week low last week and has struggled to claw back any former strength.

A combination of the ongoing pandemic and its related economic impact, as well as a failure between the UK and EU to agree a Brexit agreement deal has hit the exchange rate.

While UK-EU negotiations certainly play a part in the pound’s status, the coronavirus pandemic will continue to take the lead for traders.

Currently, Britons are unable to go on holiday at the UK Foreign and Commonwealth (FCO) is advising against all non-essential travel for an “indefinite” period of time.

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What’s more, the government is imposing a 14-day quarantine period for anyone returning to the country from abroad.

Despite this, many airlines are gearing up to take to the skies once again, offering some promise for the future of international travel.

Ryanair has suggested around 40 percent of its flights will resume by July, meanwhile, a number of Wizz Air flights took off from Luton in May and continue to fly with new hygiene standards for passengers.

The government has also suggested the implementation of “air bridges”, allowing Britons to fly to countries with low infection rates.

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Matt Crate, managing director of WeSwap, the UK’s largest P2P travel money provider commented, “The air bridge scheme could make foreign travel to some destinations more palatable for tourists this summer by negating the two-week quarantine period.

“This could mean that travel providers, hotels and hospitality workers both in the UK and abroad who rely on tourism can capitalise on the summer period.

“Leisure travel is seasonal and getting the travel industry moving again will mean trying to restart foreign travel in summer 2020.

“If the government can work with its counterparts in France, Spain and beyond as suggested, Brits can try and make the most of foreign travel this year and the industry can begin to get back to normal.”

In the meantime, for travellers left with cancelled plans and unused travel money, it might be a headache to try and switch that money back right now.

Many travel money services are on pause for now during the lockdown measures.

In the meantime, for travellers left with cancelled plans and unused travel money, it might be a headache to try and switch that money back right now.

Many travel money services are on pause for now during the lockdown measures.

In order to get the best rates, experts advise holding on to any leftover money until they reopen, or holidaymakers get the chance to jet off again.

Ian Stafford-Taylor, CEO of Equals (formerly known as FairFX) advised: “If they can, holidaymakers might want to keep hold of their currency until their next trip and use it then.”

“For those using prepaid currency cards, they can spend their money back in the UK online or in stores, keep it for their next trip, or change it to a different currency altogether.”

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