Pound loses ground against the euro

As confidence in the UK's employment outlook dropped for the third consecutive month, the pound fell against the euro and the majority of its other major peers, forex traders may be interested to learn.

Sterling fell 0.5 per cent to 86.41p per euro at 08:19 BST this morning (October 10th), although it made gains of 0.2 per cent against the dollar, reports Bloomberg.

The news provider's Correlation-Weighted Currency Indexes suggest that the UK currency has dipped by 0.7 per cent over the last six months.

Last week, the pound also dipped against its counterparts following an announcement by the Bank of England that it was planning to reactivate its quantitative-easing programme.

This led some investors to exhibit greater concern that rising inflation will devalue the pound.

Following pledges by German and French leaders to deliver a plan in three weeks to deal with the debt crisis in Europe, the euro rose and the yen and dollar dipped as investors stepped up purchases of US equity futures, Bloomberg reported.

Posted by Clive Arneil