British Pound Is Hammered By Euro
Posted by Allison on 1 June 2009, 12:46
Let’s face it, the Euro hasn’t exactly been one of the strongest currencies available over the past few months. But when it comes to finding one of the poorest performers’ altogether, you would have to look past the Euro and set your eyes squarely on the British pound.
If we look back over the past few weeks to see how the pound has progressed in the head to head against the Euro, we can see that this is true. It certainly didn’t start well as far as February’s figures were concerned, getting off to a weak start on just 1.1137 Euros to the pound.
But it did finish that first week very well by pushing things up to 1.1486. It then dropped back to a low point of 1.1074 on the 12th February, before rallying back to 1.1310 just twenty four hours later. That finished off the week in style, for sure.
The pound then languished mainly in the 1.13 Euro area for the next few days, right up until the 25th of the month. That’s when it started to dip again, and the pound grabbed just 1.1256 Euros by that time. The pound really had a bad week just then, as it finished by limping home on 1.1196. Suddenly the area of parity came back to haunt us, as it started to look like something of a possibility once more.
But the worst figures were apparently still to come. The pound did push back against the Euro the following week, before ending it on 1.1235 Euros to the pound. The question now was whether it could hang on to that level of exchange rate or not. Anyone thinking about taking a holiday somewhere in the Eurozone during the near future might have hesitated though. Whatever they were hoping to see on their currency converter, they wouldn’t have liked the reality of the situation.
On the 9th March the exchange rate dropped back markedly to 1.0972, and there was another drop to come the very next day. That figure ended up on 1.0835. This was clearly not going to be a good week for the pound, and Thursday 12th March proved to be the lowest point of all – at least so far. That was when the exchange rate dropped down to 1.0743.
Friday 13th did at least prove to be moderately lucky for the British pound though, as it gained a little over a single Eurocent to grab a finishing figure of 1.0845 for the week.
There is no doubt that the pound is still in very troubled times. There are plenty of news stories and reports to back this up as well. On the 12th March, this report appeared on the Economic News website here. Further bad news had been available to read two days before that on the renowned Reuters website, here. And we can fairly surely expect that there will be more to come as well.
But where will we go next? Will the Euro find enough strength to bring the pound to its knees and demand parity? Or will sterling fight back and at least take that prospect away from it, if not get a really good exchange rate?
It seems doubtful that we can expect any great result, but it will be worth keeping an eye on the figures to see for sure.