Play all audios:
The pound to euro exchange rate slumped on Thursday as the trading week drew to close. The coronavirus pandemic continues to heavily influence the movements of GBP. There are currently
nearly 4.5 million cases of the deadly virus worldwide. Other contributing factors to the drop are “increasing prospects of additional BoE stimulus in June exerting pressure,” said experts.
Looking ahead at today, it is likely risk will be “taken off the table,” as the trading week ends. The pound is currently trading at 1.1287 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.
DON'T MISS “Sterling consolidated just above five-week lows against the common currency yesterday, with the expected sluggish economic recovery and the increasing prospects of
additional BoE stimulus in June exerting pressure,” said Brown. “Today, as the week draws to a close, one can expect positions to be trimmed and risk to be taken off the table. “These are
two factors that will likely pose headwinds to the risk-sensitive pound.” Holidaymakers are unlikely to be in the market for euros quite yet, of course, as Britons are still unable to
travel. Although lockdown measures have been eased ever so slightly this week in the UK, little hope has been offered for those hoping to enjoy a foreign holiday. The UK government still
advises against all but “essential” travel in a bid to limit the spread of the virus. The Foreign and Commonwealth Office’s COVID-19 Exceptional Travel Advisory Notice remains in place. It
states: “As countries respond to the COVID-19 pandemic, including travel and border restrictions, the FCO advises British nationals against all but essential international travel. “Any
country or area may restrict travel without notice. “If you live in the UK and are currently travelling abroad, you are strongly advised to return now, where and while there are still
commercial routes available. “Many airlines are suspending flights and many airports are closing, preventing flights from leaving.” Yesterday, expert Simon Calder told the BBC that, under
the new government lockdown guidelines which were revealed as part of a 50-page plan, there are five key things that affect Britons jetting off abroad. “There are five tests going on. The
first one is ‘can you get to the airport?’. “Secondly, ‘can you go abroad?’... Third thing, ‘is there going to be an airline that is prepared to take you?’" Calder continued: “Fourth,
and very critical, ‘is the destination going to let you in?’...And then crucially, ‘what happens with the quarantine rules that we’ve been told about here?’"