The pound performed well against the euro at the start of the week, with experts saying it experienced its best day in a month. But yesterday was a “rather tedious day of trade”, according to one currency expert, and no changes are expected today.
Yesterday, Mr Brown spoke about sterling’s decrease from where it was trading at above the 1.16 handle on Tuesday to below it on Wednesday.
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.”
George Vessey, UK Currency Strategist for Western Union Business Solutions, also commented on the pound’s performance yesterday, comparing it to the dollar.
He explained: “GBP/USD is trading closer to the $1.39 handle this morning, extending the pullback from 7-week highs.
“The US dollar’s strength, Brexit jitters and COVID woes supersede the upbeat UK jobs data and re-opening optimism.
“The UK Consumer Prices Index 12-month rate came in at +0.7 percent in March when compared to +0.4 percent booked in February while missing expectations of a +0.8 percent print, the UK Office for National Statistics reported.”
Mr Vessey went on to explain that “coronavirus statistics remain of importance to sterling”.
He said: “Keeping infections down while the economy is significantly more active than beforehand is critical to the next lifting of restrictions.
“Low infections also prove the success of vaccinations, where the campaign remains focused on providing second doses rather than reaching new people at this point.”
Now that Britain is close to vaccinating half of its population, Mr Vessey said that “hitting that milestone could further boost sterling”.
So, what does all this mean for your travel money?
Despite foreign travel being off the cards until May 17, when some countries may reopen their borders to tourists, many Britons have already been booking holidays and flight tickets over the past few weeks.
However, experts have warned against exchanging travel money just yet due to the unpredictability of the coronavirus.
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.”