The pound to euro exchange rate rocketed upwards on Tuesday in a flare of success. GBP finally “found the catalyst that it has been waiting for,” said experts. The uptick came after comments from the Bank of England (BoE).
“Sterling-euro found the catalyst that it has been waiting for yesterday,” said Brown.
“[It broke] out to the upside of the recent range after BoE Governor Bailey’s downbeat comments on the prospects of negative rates led the market to price out such an outcome.
“The cross hit its highest levels since late-November in afternoon trade, above the 1.12 handle.
“Today, the data calendar is rather quiet, though the test will be whether the market can cling onto the gains made yesterday.”
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Adam Ma and Steven Colangelo from Western Union Business Solutions also shared their insight.
“Yesterday saw Sterling post its largest daily gains since early November as Bank of England (BOE) Governor Andrew Bailey eased market expectations on negative interest rates,” the experts said. “NHS England announced a total administration of first doses to 2,080,280, the UK aims to get 15 million of the most vulnerable vaccinated by mid-February.
“In his latest comments, BOE’s Bailey not only muted negative rate chatters but also said he does not, ‘think covid will cause a structural shift in the UK economy.’
Colangelo and Ma continued: “The NHS vaccination policy puts the UK well ahead of both the EU and US in terms of vaccinations per 100 people, a development which could help Sterling in a world where foreign exchange investors rewards those currencies belonging to countries that exit the health crisis first.
“A successful vaccination programme could differentiate the UK from its peers and provide a bullish GBP bias in the medium to long term.
“The rollout of vaccines will ultimately determine when the UK economy is able to recover, which in turn influences decisions at the Bank of England on interest rates and quantitative easing.”
They added: “GBP/EUR has reclaimed the €1.12 handle this morning a feat that has rarely occurred over the past six months, upper resistance at these levels could see the rally run out of steam around the €1.1277 level.”
It is hoped holidays can start taking place again in the Spring.
Brian Young, managing director at G Adventures, reckons holidays will be back on in just three months.
“Travellers can confidently book now for travel from March onwards,” he told Express.co.uk.
However, this should only be done if booking with a reputable holiday company as you don’t want to take any risks.
“The most important thing when booking is to look for a company that offers flexibility,” explained Young. “Recent months have shown that restrictions can change quickly, and having the opportunity to be flexible with your booking is key.”
