The Perils of the Pound Versus the Euro
Posted by Allison on 18 April 2011, 15:04
When February came to an end this year, the British pound was bagging a nice rate of 1.1726 against the Euro. This was good news for anyone wanting to head over to some part of Europe for a weekend break in the near future.
But how long would this last? Would the pound be able to keep such a rate throughout March or would it struggle to keep its head above water? The good news that came through initially was that the pound managed to get to 1.1795 by the second day of March. But was this a short lull into security or was there bad news to come?
That first week did appear to bring some bad news because it ended on 1.1654 – lower than we were hoping for. Was this the start of a path heading downwards?
Fast forward a week and the picture was becoming clear. We now saw the pound on 1.1611, having dropped a small amount in the course of the week. It was a way off being below 1.16, but that figure wasn’t too far away.
Indeed the first day back the following week saw a closing rate of 1.1548 on the currency converter. Anyone wanting the pound to stay with a high rate throughout March was looking at their dreams disappearing. Remember that as February ended we had a rate of 1.1726 on the cards. That seemed a long way away now, and we still had a long way to go until the end of March.
By the end of the week we were on the pound had dropped further to 1.1444, giving us no hope that we could recover a significant amount of losses by the time April dawned. In fact as things turned out we had a fair way to go yet until we reached rock bottom – or at least what we hoped was rock bottom.
Fast forward to the end of the month and we were on a sorry 1.1316. So will the pound recover and claim back its losses against the Euro in April? We’ll have to wait and see.