Pound Continues Down

Having seen exchange rates steady somewhat towards the end of last week, the Pound took another tumble on Friday, particularly against the Euro where PMI data showed that the Eurozone economy is improving. The index showed an improvement to its best level in 11 months, and the Euro took advantage to advance to its most expensive since July 2011.

Against the dollar, sterling also fell, despite worst than expected employment data in the States, showing slightly fewer jobs than expected were added to the US economy in January.

This week as February gets started properly we have a lot of data due out likely to affect rates, so keep in touch with us at Currency Index if you have any upcoming requirements, although the week is quiet in the UK apart from the monthly quantitative easing and interest rate announcement on Thursday. Today we have some Eurozone inflation numbers and US factory orders – will the recent trend continue and see these currencies both strengthen against sterling? Some analysts thing the Pound has been oversold and is due a recovery, however we will likely need some good news in the economy before we start to see any movement.