Posted by Allison on 25 October 2010, 12:00
One of the most interesting currency pairings to look at is always the British pound versus the Euro. If you have been watching the currency converter lately you will know the two have been tussling for a while now. Just when you think one of them has got the edge over the other one, it swings back in the opposite direction.
So let’s see whether the same happened during September for these two currencies. When we left them at the end of August the pound was claiming 1.2124 Euros, but just one day in it hadn’t made the best start. This was when it slipped back to 1.2032. By the time we hit the first weekend in September we were down to 1.2001, and threatening to drop back under the 1.20 mark as well.
It didn’t take us long to do it either. The first day back after the break saw the pound fall to 1.1929. It must have come as a shock though because the next day it shot back over the 1.20 mark again and ended up finishing the week on 1.2144.
So was this how things would go for the whole month, or did these two currencies have something else in mind?
Well as it turned out the following week would be very different. The pound didn’t have much to offer at all in terms of strength, and so it ended up finishing on Friday night with a figure of 1.1965. It was slightly disappointing to say the least and possibly setting us up for more disappointment too. We’ll see.
Indeed the week beginning the 20th September was a poor show for the pound. It slid to 1.1928 on Monday evening, and by Tuesday evening it was down to 1.1828. But that wasn’t the worst of the matter, as the figures slid to 1.1691 by Wednesday night. Could this get much worse, or was this rock bottom we were looking at already?
We picked ourselves up on the 23rd and finished the day on 1.1757 but we slid back a bit more by the weekend. Clearly this wasn’t going to end up going the pound’s way – not unless a miracle happened as we went into the final few days of the month.
The 27th ended with an exchange rate of 1.1759 on the cards, but no miracle looked to be forthcoming. In fact the next few days saw the Euro taking charge over the pound and it even managed to force it back to 1.1628 by the end of the month.
This was quite a drop from the 1.21 rate we started the month with, and it signalled a strong victory from the Euro. We can only hope the British pound has something better in store to offer next time around, as we look to build a stronger position against the European single currency.
Until then, we hope you didn’t have any European holidays planned in the near future.