Pound to euro exchange rate: Sterling rises thanks to euro’s drop amid coronavirus crisis

The pound to euro exchange rate “ticked higher” yesterday, said, experts. Today has seen GBP slip over the 1.4 mark as sterling benefits from a positive boost. The rise comes after the euro suffered following a lack of agreement from eurogroup finance ministers regarding a common fiscal response to coronavirus.


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The improvement in the pound also comes despite news of Prime Minister Boris Johnson’s admittance to hospital for the virus this week.

The announcement initially resulted in GBP falling against both the euro and dollar before, thankfully, the pound improved.

Looking ahead at today, coronavirus will remain the centre of investors’ attention.

The pound is currently trading at 1.1409 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 ticked higher against a weaker euro on Wednesday,” said Brown.

“The common currency sold off after eurogroup finance ministers failed to reach an agreement on a common fiscal response to the ongoing crisis.

“Today, the pandemic will remain in focus, with investors likely to trim riskier positions ahead of the long weekend.”

John Vandesquille, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offered his view on the long term impact of the pound’s movement on the tourism sector.

“With Brexit negotiations becoming a pressing issue again and a looming post-COVID-19 recession, the uncertainty related to the future of the head of government position adds to the already bleak economic future of the UK,” said Vandesquille.

“Many are now expecting the pound to reach a lasting parity with the euro in the next few months.

“The evolution of the exchange rate could actually end up having at least one positive impact for the UK.


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“Indeed, generally considered as an expensive destination, the country could increase its existing popularity in Europe, which constitutes the core of its tourist arrivals – 25.4 million visitors in 2019.

“Furthermore, the weak currency, coupled with the predicted slow resumption of air travel and the ‘cabin fever’ effect caused by the isolation period, is likely to boost domestic travel within the British Isles which, in turn, would help the British hospitality industry kick-start its recovery.

“On the other hand, a weak pound is certainly bad news for some popular European destinations, such as Spain.

“Indeed, as one of the most affected countries by COVID-19, Spain will see tourism figures, one of its main industries, drop significantly in 2020, starting with British tourists, who will probably opt for more affordable destinations such as the Maghreb or Turkey.”

Last month, the FCO urged all Britons to avoid non-essential travel worldwide for 30 days, however, officials took a further step last weekend.

In a social media video update, the FCO has changed the 30-day period to an indefinite amount of time.

A tweet posted on Saturday night read: “Travel update Airplane: The Foreign Office indefinitely advises against all non-essential global travel.”

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