Sterling – Euro exchange rates plummet, where next for the Pound?
Recently the Pound has been suffering against most major currencies due to a number of reasons. Mainly the GDP figure for the Q4 of 2009 came in under expectations and despite showing we were out of recession finally, a 0.1% growth was not much to shout about. That started the tumble from a 5-month high we had reached versus the Euro and it’s been a downward spiral since. Last week, retail sales for January were the worst since records began in 1993 and coupled with the public borrowing figure showing a massive deficit, where a surplus was widely expected due to the income of self assessment tax payments, was again a massive hindrance to the pound gaining back any of its losses. With little exchange rate news out in the UK, and the Euro under pressure with the Greek economic situation we were hoping the pound might recover slightly and in the early part of the week it did just that. That was until Wednesday when Mervyn King , the Bank of England governor spoke to the treasury select co
