Pound to euro exchange rate: Sterling makes small gain despite 'volatile' trading day

The pound to euro exchange rate suffered a changeable day yesterday as it soared and then plummeted amid coronavirus panic. Sterling dropped yesterday afternoon even though the day began with the pound seeing one of its highest levels in a week. But the modest boost came after Prime Minister Boris Johnson announced yesterday that coronavirus tests would be made available to people in the UK “as soon as possible”.

Pound to euro exchange rate: GBP ‘gains ground’ despite coronavirus Pound to euro exchange rate; GBP plummets dramatically

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The Government has so far bought 3.5million tests which will reveal whether someone has had the virus and has immunity.

At the Prime Minister’s press conference yesterday, chief medical officer Chris Whitty said that the main issue with these tests is knowing how accurate they are.

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He said: “The key thing for us to do is evaluate – are these tests accurate enough to be used by the general public?

“If they are incredibly accurate, we will work out the quickest way to release them. If they are not accurate, we will not release any of them.”

READ MORE: Pound to euro exchange rate: GBP at mercy of coronavirus

Pound to euro exchange rate: The pound to euro exchange rate suffered a changeable day yesterday (Image: EXPRESS)Pound to euro exchange rate: Sterling dropped yesterday afternoon (Image: GETTY)

The positive news also coincides with the pound’s small boost.

The pound is currently trading at 1.0883 against the euro, according to Bloomberg at the time of writing.

This is a small boost from yesterday’s afternoon’s slump at 1.0837.

Michael Brown, Currency Expert at Caxton FX spoke exclusively to Express.co.uk.

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He said: “It was a volatile day’s trading for the pound on Wednesday, as sterling went on a rollercoaster ride; briefly touching 1-week highs, before dipping into negative territory, then closing with a small daily gain.

“The choppy trading conditions came as investors continued to monitor the coronavirus pandemic and governments’ responses to it.

“Today, the Bank of England’s (BoE) policy decision is unlikely to bring any further action given the recent emergency packages announced in the last two weeks, hence virus-related developments will be key for the direction of the pound.”

An analysis of today’s BoE meeting from George Vessey, UK Currency Strategist at Western Union Business Solutions said: “After the Bank of England cut its main bank rate to a record low of 0.1% last week, today we saw this rate hold. While recent monetary and fiscal measures have been helping soften coronavirus’ impact on the UK economy, commonly traded currency pairs remain in a state of relative volatility and further decisions made by the UK government and the BOE could quickly, and drastically, alter how sterling performs internationally.

“Businesses should practice constant vigilance in this environment and ensure they have the appropriate plans in place to manage their currency exposure particularly when the inherent unpredictability of Covid-19 makes planning forward more difficult.

Pound to euro exchange rate: This is a small boost from yesterday’s afternoon’s slump at 1.0837 (Image: BLOOMBERG)

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“This difficulty is pronounced for companies who seek clear longer-term trends but are challenged by sterling’s incredible volatility which makes day-to-day business activity harder for many SMEs, that don’t have the resources to monitor and manage such changes compared to corporate size firms.”

The Post Office continues to offer travel money exchanges.

Today, The Post Office is offering €1.0474 for amounts of £400 or more, and €1.0682 for amounts above £1000.

A Post Office Travel Money spokesperson said: “Any holidaymakers who are booked to travel can claim a full refund on foreign currency purchased with the Post Office if their holiday is cancelled.

“Customers need to submit both their currency purchase and sell receipts and evidence their holiday was cancelled to qualify.

Currencies (Image: EXPRESS)

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“Loading currency onto our Travel Money Card is another way to safeguard cash as this can be held over for future travel.”

The Post Office website also said that they guarantee to buy back unused foreign currency at its original value if it was purchased from them.

The lowest pound to euro exchange rate occurred in 2008 following the financial crisis.

The pound to euro exchange rate fell to 1.0203 on December 30, 2008.