Pound continues to struggle against the euro

The pound continues to struggle against the euro to the point that parity is only just around the corner as it is at its lowest level since 1999.

The pound however gained one cent against the dollar and is currently trading at $1.4924.
The dollar however fell against the other major currencies and is at its lowest level for six weeks against both the yen and the euro.

The pound slumping to a new low today and is seemingly ready to reach parity with the euro within weeks.

The value of the pound was hit by manufacturing figures released today by the CBI which revealed the true depth of the slump.

The £1- €1 parity is further bad news for holiday makers as the tourist rate in the bureau de change hits home.

In today’s trading the euro was down another 1.4 cents and that represents a devaluation of over 25 percent in the last three months on comparison to the start of the euro when the sterling would buy €1.75.

In both the euro zone and the UK interest rates have been cut although they are currently higher in the fifteen member states, as the Bank of England have sharply cut interest rates to 2 percent it has made the pound less attractive for foreign investors.

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