British pound reaches all-time low compared to Euro!
The British Pound Sterling has reached the new all-time low today with respect to the Euro. Around the afternoon a pound would cost you only 1.023 euro. Taking in notice that the Pound already has lost approximately 32 per cent of its value compared with the European entity currency the Euro. Half of that fall of the currency took place in the previous month. The British currency has heavily suffered by the continuous bad bulletins concerning the British economy.
We Traderz expect that the British central bank will reduce the interest rate anytime soon trying to limit the shrink of the economy. This is the reason why the GBP is dropping in value compared with the Euro because when the interest difference between Great Britain and the Euro zone increase even more, as a result of which the euro becomes more attractive and the interest in the British pound decreases.
The expression “Ones death other man’s bread” comes to its full glory now for us Forex Traderz. Knowing that it is most likely that the British central bank will drop the Interest rate it is quite easy to determine which currency pair to pick and invest in.
Post Details
Posted on December 29, 2008
at 12:39 pm
Written / posted by: Piere
Filed under: Currency Trading, News, forex trading