Currency Exchange UK

 

Sterling slips to Two Month Lows

Sterling slips to Two Month Lows

The pound continued its downward trend today, dropping to less than $1.60 – a two-month low against the US dollar.  Against the euro, the pound reached a one-week low.  The euro reached 89.45 pence.

The main reason for the pound’s low performance was the latest GDP data released for the UK.  It showed a generally weak economic picture of the UK.

The latest GDP numbers showed that economic output fell by 0.2 per cent in the third quarter – a revision which was much lower than had been hoped for.  It had previously been at 0.3 per cent.

Meanwhile, the US dollar reached six-week highs in the early part of the week as traders began to take profits before the end of the year.

Recently, there have been signs that the US economy is heading into a healthy recovery, meaning that many are hoping for interest rates to be increased in 2010.

The euro has been pressured by economic problems within the Eurozone – Greece, for instance, is in troubled waters over its economic health.