Pound to euro exchange rate sees slight upturn following drop
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The exchange rate of the pound has hit new highs for 2021. An expert suggested the local elections results are likely to have strengthened the sterling against the euro.
The pound has advanced on the euro in the last few days.
This is likely to have been helped by the results of the local elections in the UK.
The pound is trading at a rate of 1.163 against the euro at the time of writing.
This is up from yesterday, where it was trading at 1.155.
The current rate shows sterling is the strongest it has been this year.
Currency expert at Caxton FX Michael Brown spoke exclusively with Express.co.uk to comment on the rise.
“Sterling had its best day against the euro since last December yesterday, rallying to three week highs,” Michael stated.
He explained the increase in the value of the pound is likely to have been helped by the local election results.
Local elections took place in England, Wales and Scotland last week on May 6.
The results started to be revealed over the weekend with perhaps the most notable results coming from Scotland.
While the SNP won 64 seats, the party did not receive a majority.
The expert added the market has responded “positively” to this result.
“This is as the market reacted positively to the weekend’s election results, and the perceived lower risks of a second Scottish independence referendum,” Michael continued.
“Today’s data calendar is quiet, hence attention will be on whether the quid can consolidate yesterday’s advance.”
The sterling has been steadily climbing against the euro since the election took place.
Speaking yesterday, the currency expert stated the pound started the week strong.
He said: “Sterling starts the day, and the week, on the front foot against its G10 peers.
“This is likely as market participants react to the SNP’s failure to win a majority in the Scottish Parliament when results were announced over the weekend.”
Some Britons could be looking to exchange their money as some international travel resumes next week.
Transport secretary Grant Shapps confirmed on Friday people in England can travel to 12 named countries from May 17.
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