Monday, 16 February 2009

Pound surrenders gains over euro

The pound weakened against the euro this morning following an announcement by the CBI that gross domestic product will fall by 3.3% - the most in almost 30 years. The Group of Seven finance chiefs meeting in Rome on the weekend did not refer to the weakening pound, which is down 17 percent versus the euro in the past 12 months. Investors are speculating that this omission may therefore weaken the pound. The pound has been static so far this morning.

There are no significant announcements taking place in the UK or Eurozone today and after some good strength over the weekend, the pound has fallen back to around Friday's close.

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