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Eurozone Crisis Sees Pound Reach Three Year High Against Euro

Posted: 08/05/2012 15:34 Updated: 08/05/2012 15:34

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Pound Rises Against Euro

The pound is at a near three-and-a-half year high against the euro, as the fallout from elections in Greece and France sends the region into fresh turmoil.

On Tuesday afternoon the pound was trading for around 1.20 euros, its strongest rate against the currency since the financial crisis hit in 2008.

But don't head down to the foreign exchange bureau just yet.

Richard Driver of Caxton FX told BBC news the sterling should continue to rise: "We've seen sterling climb this year as the European debt crisis has come to a head."

"Sterling has a pretty decent safe-haven status - we think it will reach 1 euro 30 by this autumn."

The development comes amid fears Greece may be forced out of the euro following elections in the country which rejected austerity plans, and the victory of socialist candidate Francois Hollande in France.

On Monday Spainish prime minister Marian Rajoy indicated they could bailout struggling banks.

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  • A pedestrian is reflected on an election poster of Democratic Alliance party at a bus stop in Athens, Saturday May 5, 2012. Greeks head to the polls Sunday in their most critical and uncertain election in decades, with voters set to punish the two main parties that are being held responsible for the country's dire economic straits. (AP Photo/Kostas Tsironis)

  • A Pakistani worker decorates a canal with artificial flowers, in Lahore, Pakistan, Monday, May 7, 2012. (AP Photo/K.M. Chaudary)

  • Donated kits on display as part of the LV= SOS Kit Aid celebrating and Aldwinians RUFC's 75th anniversary.

  • Soccer - Barclays Premier League - Blackburn Rovers v Wigan Athletic - Ewood Park -An chicken wearing a Blackburn Rovers cape interferes with the game (PA)

  • Soccer - Barclays Premier League - Blackburn Rovers v Wigan Athletic - Ewood Park, A plane displays a banner from Burnley fans above Ewood Park before the game

  • A South Korean worker attaches a devotee's name tag with their wishes on a lantern, in the preparation for the birthday celebration of Buddha, which falls on May 28, at Jogye temple in Seoul, South Korea, Tuesday, May 8, 2012. About one-third of South Korea's 48 million people are Buddhists. (AP Photo/Lee Jin-man)

  • Ronnie O' Sullivan in action during the SAGA Insurance Masters 2007 Final at Wembley Arena, London. Picture date: Sunday, January 21, 2007. Photo credit should read: Chris Young/PA Wire.

  • A baby monkey clings to the leg of her mother in a park in Kuala Lumpur, Malaysia, Monday, May 7, 2012. (AP Photo/Mark Baker)

  • A prisoner rests his arms in the wall of his cell during a Mass for prisoners in the courtyard of La Esperanza penal center in San Salvador, El Salvador, Monday, May 7, 2012. The prisoners asked for Monsignor Fabio Colindres to hold a Mass for them at the prison. (AP Photo/Luis Romero)

  • A tall steel cross is refracted in rain drops on a window in Joplin, Mo., Monday, May 7, 2012. The cross is all that is left standing of St. Mary's Catholic Church, which was destroyed by an EF-5 tornado that tore through a large swath of the city and killed 161 people nearly a year ago. (AP Photo/Charlie Riedel)

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The pound is at a near three-and-a-half year high against the euro, as the fallout from elections in Greece and France sends the region into fresh turmoil. On Tuesday afternoon the pound was tradin...
The pound is at a near three-and-a-half year high against the euro, as the fallout from elections in Greece and France sends the region into fresh turmoil. On Tuesday afternoon the pound was tradin...
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wood773
20 Fans
08:12 PM on 05/08/2012
the pound riseing against the euro wont help uk plight at all this wil lonly hit are exports to euro land more
Permalink  |
Lord Elpus
If you're going through hell, keep going
46 Fans
11:38 PM on 05/08/2012
Absolutely, our 'partners' will be quite happy to see the euro effectively devalued as it will provide a barrier to our exporters, encourage Brits to take their hols in Europe and spend even more on German cars.
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HUFFPOST SUPER USER
Parthiban Yahambaram
60 Fans
09:56 AM on 05/13/2012
The Euro is actually over-valued against the pound, and has been for some time. The interesting thing though, is that while it is over-valued in Greek and Italian terms, it is actually under-valued in German terms. This really is the fundamental problem with the Euro, because monetary union before any form of political or social unity was present was unwise and has led to its natural consequences.
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HUFFPOST SUPER USER
NOSHER
66 Fans
05:30 PM on 05/08/2012
why dont we vote to be out of the euro osborne is lending them money which could do our country some good
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HUFFPOST SUPER USER
Hugh Albert
Moderation in somethings
69 Fans
06:41 PM on 05/08/2012
We don't vote to be out of the Euro because we aren't in it.
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foolsnhorses
31 Fans
09:17 PM on 05/08/2012
We don't get to vote on anything relating to Europe, despite election campaign promises, because they are afraid we will say NO. Democracy as we know it is now long dead, as our MP's don't do anything except implement the laws that are dreamed up in Brussels..... that, by the way, is 75% of our laws.
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HUFFPOST SUPER USER
NOSHER
66 Fans
08:07 AM on 05/09/2012
thanks for your comment mate i know we are not in the euro but osborne is still throwing money into it and we dont want anything to do wit it
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