Posted by Allison on 15 June 2010, 09:36
One of the biggest news stories around at the moment in the currency world is the uncertainty over the future of the Euro. Some experts are saying it could be on its last legs, with a possibility of it disappearing altogether in the next few years.
Whatever might happen in this respect there are no doubts the currency converter figures showing the Euro at the moment are rather interesting. At the end of April the figure was 1.1490, but during the first few days of May the onus was firmly on the British pound and it managed to soar to 1.1863 by the 6th.
So was this the beginning of a long and fruitful slew of exchange rates for the pound, or was the Euro going to start fighting back fairly soon? As it turned out the Euro fought back the very next day; it closed out the week on a lower 1.1520 for the pound.
But the pound wasn’t down and out for very long. The following week saw the pound making good headway for the whole week, achieving the best rate of 1.1773 by the 12th. It did drop slightly to end the week on 1.1667 though.
So where would we go from here? We were still doing better than we had been at the start of the month, so anything more would be a bonus really. The next week started well for the pound once more, achieving a better rate of 1.1690 at the end of Monday. But the rest of the week went in favour of the Euro, as the final rate on Friday night had dropped back to 1.1489 for the pound. This was on the 21st, so we were rapidly approaching the end game for the month. Which currency would come out on top as the days strolled by?
It should be said at this stage that the news stories surrounding the fate of the Euro for the long term were starting to build up. This would no doubt have an effect on the strength of the Euro, as everyone wondered whether the recession was too much for the member countries to cope with as a unified whole.
And indeed on the first day back that week the exchange rate went strongly in favour of the pound again. This time it went up to 1.1617 by Monday evening. Did this set us up for better results during the rest of the week as well? Indeed it did, with 1.1816 being the high point of the week on the 27th. We dropped back a little the following day to 1.1765, but even with one day left to trade before May was over, the pound was firmly in control.
The final rate for the month was 1.1783, making 0.0293 the total increase the pound had managed over the month as a whole. The question now is whether this pattern of strength by the pound will continue into the future as well.