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Why has sterling strengthened since the UK began printing money?

shamblertine · 2009-06-17 19:07:21

the euro/sterling rate is down to 85p or 84p from about 92p when they began printing money. This doesn't make sense to me, how come it didn't go the other way?

17-06-2009 7:07pm

#1

shamblertine

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the euro/sterling rate is down to 85p or 84p from about 92p when they began printing money. This doesn't make sense to me, how come it didn't go the other way?

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#2 17-06-2009 7:55pm

ixus

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Maybe because they're not the only ones engaging in Quantative Easing (openly)?

When the ECB started to cut rates, we saw the currency move significantly.

The European economy has weakend in recent months. That's why the FX rate fell back from near parity. Initially, the euro was approaching parity as it looked like the euro economy would not suffer as much as the economy in the UK.

That's one way of looking at it.

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