Euro experiences strong week as the pound fluctuates
Currencies Direct November 23rd 2012 - 2 minute read
The euro has experienced positives in the last week while the
pound saw fluctuating fortunes, following on from rather negative
news for both currencies a week ago.
A lack of further negativity in the eurozone saw the single
currency erase most of the losses it made last week, while the
pound diced with the notion of reaching its preferred level before
falling again toward the end of the week.
It has previously been the case that Greece has been a burden
for the euro, but this week saw forward movement with regards the
country and the aid it is set to receive. On Monday, the
euro rallied amid the news that the Greek economy was on the verge
of a cash injection of some £28 million in aid. This saw the single
currency exchange rate respond well, and after hitting a two-month
low last week, it jumped to reach a new two-week high
of 1.2819 against the dollar, the highest it has sat at
since November 7th. This meant that it ended the day
at 1.2804, up 0.5 per cent in the space of just a
Later in the week though, news that France was to lose its
prized triple AAA credit rating from Moody’s saw investors neglect
the currency, and on Tuesday, it would drop as low as 80.65 against
the pound, falling by a full 0.2 per cent in the day.
At the end of the week, however, the euro consolidated its
successful five days when compared to last week, as further
positive news from Germany’s economy, the largest in the region,
coupled with the fact Greece experienced no further downturns in
the remainder of the week saw the euro finish its brightest period
in a while at 1.29000 against the greenback to mark a
good week in general.
For the pound, it was a bit more of a fluctuating week, as it
saw its early gains drop towards Friday.
On Tuesday, after the French news became apparent, investors who
were neglecting the euro were turning towards the pound to leave it
sitting at 1.5930 against the dollar, as it chased the
magical 1.6000 figure, and also gained 0.2 per cent on the
Later in the week though, as activity quietened in the US around
the Thanksgiving holiday, the pound would suffer again, falling
back to 1.59000 in spite of its better performance
earlier in the week.
As the markets closed on Friday, the pound rose once more though
to complete a very choppy week, as it again breached the
psychological barrier at 1.6000 against the dollar. The pound
finished on Friday alongside the greenback with the pair closing in
on 1.6019, showing that there could be more positivity to come next
After good ends to the week, both the euro and pound will be
seeking out positives for next week as the economies look to build
on a better period than those that passed recently.