Pound to euro exchange rate have seen increased volatility as the currency market struggles to make sense of the CORVID-19 pandemic, and tries to better understand what lies ahead. A key difficulty is trying to understand the true economic effects of the crisis, with us still being very much in the early stages.
GBPEUR levels have nonetheless risen quite sharply from the lower points we saw on the 19th March, when the interbank rate fell to 1.0533. This was triggered by the realisation the UK would be implementing the social distancing rules and in anticipation of the effects on the economy.
Since then, sterling has found favour as the markets embraces some of the optimism that the measures taken by the government and the Bank of England, will all help to take the sting out of the current economic pause that is being endured.
Will the Pound to Euro Rate Rise or Fall?
The current trajectory is indicating GBPEUR levels are rising, this is in part due to the pressures on the euro as well. With Europe suffering from this crisis too and experiencing the more severe lockdowns being employed by France, Spain and Italy, there is a worry over the economic damage on the Eurozone.
Pound to euro interbank rates have risen above 1.13 today and whilst there is room for it to move higher, there are never any guarantees in the currency market. GBPEUR might just as well lose value should fresh concerns arise over the state of the UK economy.
Tomorrow, we have the latest UK Manufacturing data for March, with Construction on Thursday and the all-important Services news on Friday. These data sets will be some of the first key indicators for March and might well provide a bleak picture for the shape of the UK economy at this time.
Last week’s flash UK data indicated a worrying picture with the figure showing a worst performance than since records better, worse than the 2008 crisis. April will detail some of the latest news from the UK (and European) economy for March, when the coronavirus really started to affect the UK and Europe, and could provide further cause for volatility ahead.
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