Pound to euro exchange rate: Sterling could increase value before local elections tomorrow

Pound to euro exchange rate sees slight upturn following drop

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The pound was trading just above the 1.15 handle against the euro yesterday, but this morning it is closer to the 1.16 handle. Sterling could “test” this mark further today before tomorrow’s local elections, as well as the Bank of England’s monetary policy meeting.

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

This is a higher rate than yesterday when sterling was trading at a mark of 1.1533.

Experts did not expect the pound to move much yesterday, but it gradually increased to almost reach the 1.16 mark.

It could rise again before tomorrow morning.

Michael Brown, currency expert at Caxton FX, shared his insight on the current pound to euro exchange rate with Express.co.uk.

He said: “Contrary to our expectations for a quiet day, GBPEUR rallied strongly yesterday, breaking and closing to the upside of the recent trading range, implying that a test of the 1.16 handle could be on the cards before tomorrow’s BoE decision, and packed slate of local elections.”

The Bank of England decision that Mr Brown mentioned is one of the firm’s annual monetary policy meetings.

The bank’s Monetary Policy Committee comes together to decide what monetary policy action to take, doing so eight times a year.

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Yesterday, Mr Brown said: “Sterling-euro remains rather dull, perhaps unsurprisingly given the closure of London markets yesterday.

“The cross continues to hold just north of the 1.15 handle, and is unlikely to deviate too much from this level before Thursday’s BoE decision, and local elections.”

However, contrary to what Mr Brown expected, the pound moved from just north of the 1.15 handle closer to the 1.16 handle during the day yesterday.

Until yesterday, it had been a quiet few days for the pound, as it also traded just above the 1.15 mark before the bank holiday weekend too.

George Vessey UK Currency Strategist at Western Union Business Solutions, also commented on the pound to euro exchange rate.

He said: “Sterling’s implied volatility could fluctuate depending on the outcome of the Scottish election this Thursday.

“The Scottish National Party (SNP) is expected to claim a majority which in turn could increase the likelihood of a Scottish independence referendum.

“This risk event could result in a knee jerk reaction in the pound with weakening expected to be the case.”

So, what does all this mean for your travel money?

Foreign travel is currently off the cards for Britons, but the ban is set to be lifted from 17 May, with some countries expected to reopen their borders to tourists.

However, some experts have warned against swapping travel money at this time.

James Lynn, co-CEO and co-founder of Currensea, said: “While it is tempting to take out foreign currency in anticipation of a holiday I would advise against this.

“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.

“Once we are allowed to travel again, this will hopefully signify the end of the COVID bump and I anticipate this will mean the pound will improve significantly.”

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