Considering the Progress of the British Pound Versus the Euro
Posted by Allison on 20 February 2012, 16:58
On the last day of 2011 the British pound bagged a rate of 1.1971 against the Euro. But there was a whole New Year ahead to get started on, so when the traditional New Year’s Day break was done, there was work to do to try and gain a better rate against the Euro.
The first few days were better than expected, resulting in the pound reaching an impressive 1.2032 by the 4th January. So was this a good sign of things to come, or would there be other surprises in store?
The first week certainly ended on a good note, providing us with a closing rate of 1.2100 on the 6th January. The real question was whether we had better results to come later on the following week. Monday started well as the pound attained a rate of 1.2135, but then it was an up and down week that unfortunately ended down for the pound. By the 13th we were looking at a rate of 1.2001 to close out the week with. Was this a sign of a poor finish to the month, even though we were only halfway through so far?
We certainly didn’t hang on to the 1.20 rate territory for much longer; by the time trading had finished on the 18th, we were down to 1.1992. We would soon discover that while the first half of the month was marked by exchange rates in the 1.20 and 1.21 region the second half would be very different indeed.
That particular week ended a couple of days later on 1.1991 and there was a bigger drop in store to mark the beginning of the following week, as we fell a little further to 1.1958. It seemed as if the pound was unable to conquer the Euro, even though the currency was rather embattled at the moment. It rallied to 1.2018 on the 25th, but that would be as good as it got for the moment. That week finished on 1.1949. There were just a couple of days trading left for the pound against the Euro on the currency converter, and the pound finished the month on 1.1974. Perhaps we should hope for better in February.