The pound sterling lost strength against the euro on 1 July as concerns grew about the state of the UK economy.
At 3:33pm on Wednesday, the euro had increased by 0.4 per cent on the pound, reaching 85.55 pence. This weakening of the pound was the result of the news revealed the previous day that the economy had contracted by 2.4 per cent in the second quarter as a result of falling gross domestic products figures.
At the same time, the pound increased by 0.5 per cent on the dollar, to $1.6537, in response to figures that showed US firms had cut more jobs than expected. In addition, trading is cautious in anticipation of the release of US payroll figures, which are expected to give a greater impression of the US economy.
However, sterling reaches an eight-month high against the dollar on Tuesday 30 June as a result of positive news for the housing market from Nationwide.
Sterling gained 15 per cent against the dollar in the second quarter which equates to the currency’s best quarterly performance since 1987.
Financial News
