The pound to euro “traded flat” at the end of the last trading week. The lack of change came as the market focus shifted elsewhere with July coming to an end. But what could the week ahead have in store for GBP?
Once one of the countries with the highest number of COVID-19 cases, the UK has now been surpassed by a number of other nations.
The US, Brazil, India, Russia, South Africa, Mexico, Peru, Chile, Colombia and Iran all have more confirmed cases of the virus than Britain.
Looking ahead further into the week, developments from the Bank of England (BoE) are also unlikely to move GBP.
The pound is currently trading at 1.1119 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 traded flat against the euro on Friday,” said Brown.
“Attention [was] elsewhere as the market continued to focus on negotiations over a fifth US stimulus package, and month-end flows largely netting themselves off in GBPEUR.
“Looking ahead, this morning’s manufacturing PMI surveys are unlikely to significantly move the dial for the pairing, with attention remaining on the latest COVID headlines.
“Later this week, on Thursday, the BoE should keep all policy instruments unchanged.”
So what does this all mean for British travellers heading off on their holidays and looking to buying travel money?
Major holiday money providers are now back in full swing after closing their doors during lockdown.
The Post Office is currently offering a rate of €1.0698 for over £400, €1.0854 for over £500 and €1.0909 for over £1,000.
Holidaymakers must make sure they do not leave buying foreign currency until the last minute.
In particular, they should avoid purchasing it at the airport as the rates are notoriously unfavourable.
What’s more, there is a risk that there may be no bureau de change open at the airport yet.