The UK pound kept close to the 1.20 mark against the euro this week, as economic data in both the UK and eurozone points to a difficult road for 2012. In particular, in the UK retail sales dropped a precipitous –0.8% last month, signalling that consumers are no more confident in their prospects, while the coalition government borrowed more than twice as much as forecast. In Europe meanwhile, attention has turned to Spain and Italy, where crucial labour reforms are being debated, while spluttering manufacturing output points to a deepening recession. UK retailers on the back foot UK retail sales declined double the expected rate last month, falling –0.8% compared to the -0.4% forecast. … [Read more...] about UK pound to euro exchange rate stable as outlook darkens
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Pound to euro unchanged on mixed UK-EU outlook
The pound to euro exchange rate remains unchanged at 1.20 this week, as a series of economic releases indicate that growth in both the UK and Eurozone will be hard-won in 2012. In particular, credit rating agency Fitch has threatened to slash the UK’s triple A credit rating, while in Europe, European Central Bank president Mario Draghi has pointed to the competitiveness gap between northern and southern members as the next big hurdle. Looking ahead, it looks as though the pound-to-euro rate will remain tethered inside the 1.1750-1.20 range established at the outset of 2012, unless a disaster in either Britain or Europe tips the balance. In the UK, pessimism has flared as rating agency … [Read more...] about Pound to euro unchanged on mixed UK-EU outlook