Pound Drops Against Euro Once More
Posted by Allison on 16 July 2009, 11:20
It hasn’t been a good month for the British pound, and it certainly hasn’t held its best performance against the Euro.
A month ago on the 13th June, it was holding an exchange rate of 1.1712 against the Euro. This wasn’t exactly the best of news for holidaymakers who were hoping their currency calculator figures would be better than that, but it had been worse as well.
It crept up to 1.1868 on the 22nd June but this would turn out to be the highest point so far. Just twenty four hours later it had dropped back to 1.1663, making us worry that there was still worse to come. It did bounce back to 1.1774 the very next day, before dropping back again just twenty four hours later to 1.1672.
This seems to be indicative of the pound and its predicament at the moment. We constantly see a brief resurgence followed by an immediate drop back to the original level the following day. It cannot seem to hold onto a good result for more than twenty four hours, which certainly is worrying for the long term.
There was a news story on the Bloomberg website recently that seemed to point to the reasons why the pound has suffered again with the Euro lately.
The pound finished that week against the Euro on 1.1705, but while it hit a high of 1.1783 on the very next day of trading, it didn’t last long. And it fact that was the last time we saw an exchange rate figure in the region of 1.17 Euros.
The 1st of July didn’t get off to the best start, with 1.1679 recorded at the end of that first day of trading. That week finished up on 1.1678, but there was worse still to come the following week as we ended up on a low of 1.1561. It does seem as if the figures we were reporting from the end of June are long gone – at least for now – as we hope we’ll get them back at some point. It could be a long way off yet though.
So how did things finish up on the last few days of trading before we wrote this report?
Well, the week of the 10th July finished up on 1.1655. But the first day back on the Monday of the following week finished with an exchange rate of 1.1523 at the close of play. So it is anyone’s guess as to where things will proceed now. Will we see lower figures in the weeks to come? Or will the pound surprise us all and stage a comeback?
Unfortunately it would seem as if the former idea will most probably be true. Hopefully we will be proved wrong on this, but given the gloomy outlook for the UK at the moment – with the recession really taking its toll here – we fail to see how anything miraculous is going to happen with the currency in the near future.
In the end it could be months yet before it really bounces back. And we could even be talking about a time period that is longer than that. We just hope it will eventually happen – and not too far into the future either.