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.
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The UK is the third-worst hit country, with a recorded 234,440 cases.
Tragically there have been 33,693 deaths from coronavirus.
The virus has pummelled the economy as it forced the country into lockdown.
The “sluggish economic recovery” is in part to blame for sterling’s recent downturn.
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.
“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.
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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.”
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