The exchange rate between the pound and the euro hit its highest level in four weeks this week despite the ongoing global lockdown in an effort to combat the spread of the coronavirus. The recent economic fallout from these drastic measures has taken hold of the pound’s position in most markets; however, after the Easter weekend, the GBP picked up again.
Michael Brown, currency expert at Caxton FX, spoke to Express.co.uk to offer his exclusive perspective.
He said: “The pound is trading at a four week high against the common currency this morning as the pound benefits from a widespread improvement in risk appetite as investors continue to watch the pandemic of coronavirus in progress.
“This week, risk appetite will remain the main driver of the pound, as the currency will continue to advance if sentiment continues to be supported by lingering optimism about the virus. “
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However, given the unprecedented nature of the coronavirus, nothing can be predicted about how things will unfold in the weeks to come.
At present, Europe is still considered the epicenter of the virus, although cases in North America are also starting to increase dramatically.
There are currently more than 159,000 confirmed cases in Italy, 136,000 in France, 170,000 in Spain and 130,000 in Germany
In the UK, confirmed cases have exceeded 88,000.
Meanwhile, in the United States, there are more than 587,000 confirmed cases and the death rate has risen to 23,644.
Borders around the world remain blocked, while the Foreign and Commonwealth Office (FCO) continues to warn that the British should avoid all travel except essential travel indefinitely.
With vacation and airline companies canceling trips, many potential travelers can now end up with unwanted travel money.
Is it time to put those euros back in pounds?
Although fares may be more favorable now than in the past few weeks, customers may find it difficult to find the best deals offered by travel money exchange services.
Many exchange offices are now closing their doors in the middle of the pandemic.
“If they can, vacationers may want to keep their change until their next trip and use it afterwards,” advises Ian Strafford-Taylor, CEO of Equals (formerly known as FairFX).
“For those who use prepaid money cards, they can spend their money in the UK online or in stores, keep it for their next trip or change it to another currency.”
A prepaid credit card that can still be used in the UK is the travel postcard. Any money stored on the card can be converted to pounds and spent the same way as a debit or credit card.