The British Pound Goes Head To Head With The Euro
Posted by Allison on 14 April 2010, 13:48
Sometimes in this series of articles we look at some more obscure currencies to get an idea of how the British pound is performing on a wider scale. But this month we are looking at major currencies on the currency converter – and they don’t get much bigger than the Euro.
So how did the pound do against this European currency during March? Let’s find out. We are starting from a rate of 1.1201, but almost immediately things were looking poor for the pound. The following day it had been beaten back to 1.1029. A closing rate for the first short week of 1.1080 pointed to the fact that the Euro could well be in charge for this particular month.
A month is a long time though, particularly in the currency markets, and anything could yet happen with regard to these two currencies. By the tenth of the month the rate had changed to 1.0972 though, so it wasn’t looking too healthy for the pound at this stage. The further away we can stay from parity the better, and yet at the moment we appear to be heading further towards it.
We did at least end that week on a rate of 1.1009, which was better than we could have hoped for. But the week beginning the 15th ended up seeing the pound lower again on a rate of 1.0982, so anything could and might happen at this point. We still had a good couple of weeks to go in the month.
But this turned out to be a stronger week with a rate of 1.1026 recorded on the following day. This was followed up with another improvement to 1.1158 on the 17th, and in the end the British pound finished the week on 1.1179. It wasn’t exactly a resounding success but it was better than we had perhaps hoped for a short time before. There was still a lot of work to be done if the pound could be deemed to be in more control though.
The next week was really an up and down affair which saw the pound close out on Friday night on a rate of 1.1106. We were hoping for more, because this actually saw us make a loss for the whole week. But there was a lot to get to grips with here and at least the pound was still battling to be recognised and to get a better rate.
And thankfully it did finally get its teeth into things for the last three days of trading left to it. There was no time to make a grand improvement that would see us finish on a great result, but we did manage to claw things back to 1.1238. This gave us a nice result for the end of the month and at least recovered something to start off April with. And indeed we were actually slightly better off than we had been at the start of March, so that at least was worth celebrating.