Sterling began to increase on Monday this week, reaching above the 1.16 mark against the euro and thus experiencing its “best day” this month, according to financial experts. However, the pound lost its momentum yesterday and started to decrease.
He said: “Sterling lost some modest ground yesterday, failing to close north of the €1.16, which may give the bears some degree of short-term control.
“The data calendar is once more light today, so the broad 1.1490 – 1.1710 range will likely remain in play.”
It is therefore not yet clear, according to Mr Brown, if the pound’s value against the euro will increase or decrease today.
Speaking yesterday about sterling’s success on Monday, Mr Brown said: “Sterling had its best day in a month against the euro yesterday, charging north of the 1.16 handle, as the pound started the week on the front foot, with optimism about the UK economic reopening continuing to mount.
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“The key test now is whether the cross can consolidate said gains today, doing so would further embolden the bulls,” Mr Brown added.
George Vessey, UK Currency Strategist for Western Union Business Solutions, also commented on the pound’s performance at the start of the week.
He said: “After seven successive daily declines amounting to about 2.5 percent, GBP/EUR rebounded from the upper realms of €1.14 last week and has recouped half of its monthly losses.
“Yesterday was sterling’s best performance versus the euro in a month, rising over 0.6 percent on the day.”
So, what does all this mean for your travel money?
Foreign travel is currently off the cards for Britons, however, some countries could reopen their borders to tourists from May 17.
The Global Travel Taskforce is currently looking into how to categorise countries into a traffic light system, with green countries free to visit, amber requiring isolation on return, and red banned.
The eight countries that could be given the green light are the USA, Gibraltar, Israel, Iceland, Ireland, Malta, Australia and New Zealand.
However, the Australian and New Zealand governments have said that they are not likely to be permitting visitors.
Many Britons have booked holiday tickets over the past few weeks, but experts have warned against exchanging travel money just yet.
James Lynn, co-CEO and co-founder of travel card Currensea, said: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.”