Can the British Pound Defend Itself Against the Weakening Euro?
Posted by Allison on 15 December 2011, 13:45
You cannot fail to have noticed the doom and gloom surrounding the state of the Euro in recent times. But is this doom and gloom enough to allow the British pound to get hold of the single currency and get better exchange rates over it on the currency converter?
At the end of October the pound claimed 1.1453 against the Euro, and to kick off November it leaped up to 1.1693. But was this a false hope right at the start of the month, or would there be other delights to wait for as well?
The first week ended on 1.1611 so while the rate dropped back a little it didn’t sink without trace. The pound kept up its strength throughout the second week too, rallying to 1.1674 as it began and then heading up to 1.1718 before dropping back to close out the week on 1.1671.
Things were definitely looking up for the pound as it made the most of the Euro’s woes. The high point of the next week was 1.1709 and even though it lost ground again before the week was out, it still managed to finish on an appreciable 1.1654.
In fact the lowest point yet to come for the British pound was 1.1551, which it fell to on the 22nd November. But there was yet more climbing to come. It appeared as if the Euro was capable of no more than the odd effort here and there and none of them lasted for any period of time.
Consequently the week ending the 25th November finished with the British pound claiming a solid rate of 1.1684 against the single currency. As turmoil ripped through Europe it appeared as if the pound had a lot more strength in it yet, and it was determined to get the better of the Euro as much as it could.
So the closing rate for the month, after the pound had dropped back a bit again, was 1.1684. This was far better than it had started on, and perhaps that shouldn’t be a surprise.