Has the British Pound Capitalised on the Woes of the Euro?
Posted by Allison on 14 May 2012, 16:13
When March came to an end the British pound ended on a rate of 1.1991 against the Euro. But with every day that passed bringing another news story about how precarious things were in Europe, it seemed reasonable to suppose that the Euro would take a battering during the month to come.
The first day of trading came on the 2nd April and by the time the day was over the pound had improved to 1.2032. This was a good start but was it a sign of things to come?
If we fast forward to the end of that first week we can see the pound continued in good form against a struggling Euro. The closing rate on Friday night turned out to be 1.2132. So where would things go from here?
The following week turned into a bit more of a head to head and indeed by the time it was over the pound had slid back a little and closed on 1.2124. However this was but a small change and it didn’t make the Euro look any more convincing than it already did. There was a very real sense that the pound was still firmly in control here.
Indeed this was shown to be the case when the pound finished the next week with a flourish on 1.2213. These were small gains but already it was doing much better than it had been at the start of the month. Was there still room to add on more improvement by the time April was over with, or would the Euro fight back?
Fast forward another week and we have the answer. That was when the pound finished on 1.2265 on Friday night, adding on another half a cent over the course of the week. A few more days took us to the end of the month and another jump up, this time to 1.2300 – a notable amount to end on.
So clearly the Euro was struggling and the pound was making the most of it as a result.