Pound to euro exchange rate: Sterling plummets to three-week low amid coronavirus crisis

The pound to euro exchange rate plummeted on Tuesday. It fell to a three-week low as markets reacted to the latest coronavirus developments. There are currently more than four million cases of the virus worldwide.

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The UK has nearly 228,000 reported cases, with Spain, Russia and the USA the only countries with more cases.

Tragically, the UK has suffered 32,760 deaths.

Still, there is hope. On Monday, the UK government revealed details of how the country was going to move forwards as the crisis shows signs of easing.

Markets have had to price in the slow economic recovery from the virus, causing GBP to fall against the euro.

“The possibility of further policy easing from the Bank of England (BoE)” was also an influencing factor, said experts.

Looking ahead at today, coronavirus will remain the focus of attention.

No other data is due out today.

The pound is currently trading at 1.1320 against the euro, according to Bloomberg at the time of writing.

Michael Brown, currency expert at international payments and foreign exchange firm Caxton FX, spoke to Express.co.uk regarding the latest exchange rate figures this morning.

“Sterling struggled once again on Tuesday,” said Brown.

“It fell to a three-week low against the common currency, as markets continued to price in a rather slow economic recovery from the coronavirus pandemic, and the possibility of further policy easing from the BoE.

“Today, with the data calendar quiet, these aspects should remain in focus.”

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George Vessey, Currency Strategist at Western Union, also shared his expert opinion on GBP.

“Sterling tends to weaken when risk appetite softens,” he said, “but on top of this factor, a large-scale study in the UK showed a large number of people are thought to have COVID-19, which is increasing concerns that easing restrictions may result in a spike in the infection rate again and limit the reopening of the UK economy.

“In addition, the third round of UK-EU trade talks remain a worry for sterling traders this week as the UK government clings on to delivering Brexit this year despite the lack of progress in securing a meaningful trade deal.

“The coronavirus crisis coupled with a potential hard Brexit scenario could send sterling tumbling to lows tested earlier this March when financial markets crashed.”

However, with no one able to travel, the need to purchase holiday money is non-existent.

The government offered no hope to those Britons eager to escape the UK for foreign holidays this week.

The government’s advice against all but essential travel remains in place.

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