Pound grows stronger against the euro

There have been definite signs that the pound is strengthening against the euro, it has been noted, something that may interest those looking to learn how to trade.

On Friday (June 12th), figures from the European Central Bank revealed that sterling was up 0.00310 (0.36 per cent) against the euro.

Commenting on this, Marc Cogliatti, a currency strategist at exchange firm HiFX, said that there are "two sides to the coin" in this situation.

While a stronger pound can be seen as a positive sign for the economy, Mr Cogliatti explained that a weak currency is sometimes beneficial for a country during a recession.

"In order for the economy to recover, we need sterling to remain weak," he commented.

He stated that if the pound strengthens, it could prompt UK companies to import cheaper goods rather than sourcing them locally, something that could affect British businesses.

However, Mr Cogliatti noted that the stock market can go up when the pound is strong.