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Pound to euro exchange rate: GBP rockets in ‘best stretch in over four years’


The pound to euro exchange rate has gained ground on its seventh day in a row, despite growing uncertainty from COVID-19. The pound has even managed to go above the 1.14 handle for the first time in weeks.

As worldwide cases hit more than one million yesterday, the coronavirus remains at the forefront of investor’s minds.

The unprecedented boost comes as “investors continue to monitor the coronavirus pandemic and its economic implications”.

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However, despite the exchange rate’s welcome high the deadly virus will be the “primary driver of risk appetite at present”.

The pound is currently trading at 1.1423 against the euro, according to Bloomberg at the time of writing.

READ MORE: Pound to euro exchange rate: GBP shoots up to fresh two-week high

“Given the current health and economic crisis, it may be unwise to follow historical patterns in the market, yet April has often proved a positive month for GBP/USD.

“This has been the case since 2000 – each April since then has seen GBP/USD rise 16 of the past 20 years.

“This time, the pound has started the month off modestly upbeat but remains nearly 7 percent down on the year at time of writing.

“Though the currency pair hit a 35-year low last month, it also staged its best 1-week performance on record last week, climbing a huge 6.85 percent.

“This could be interpreted as a signal of further upside to come, alongside other technical indicators suggesting this momentum could be sustained if this week closes out above $1.2464.

“Seasonality should not be considered in isolation, which is why it’s important to reflect on these other technical indicators and of course the main factor driving markets – the infection rate of Covid-19, the lockdowns globally and subsequent impact on economies and exchange rates.”

Mr Vessey has said previously said that the “UK government has announced tens of billions of pounds worth of stimulus and £330 billion of state loan guarantees to help businesses try and weather storm.”

He added: The Bank of England has also stepped up its bond-buying and cut interest rates to an all-time low of 0.1 percent.” 

The UK currently has more than 33,000 cases of coronavirus and over 2,900 deaths.

Today, the UK will open its first coronavirus hospital in London, NHS Nightingale.

The hospital will become the world’s largest critical care unit and will be opened by Prince Charles later today.

Two more of the Nightingale hospitals will be opened in Bristol and Harrogate which will provide 1,500 extra beds for patients with COVID-19.



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