The pound confirms its moment of weakness and breaks an important psychological barrier against the euro. After 15 months, the euro-pound exchange rate returned above 0,90 to 0,90522. The rise in the single currency followed the vote of the Greek parliament, which yesterday gave the definitive green light to the austerity plan desired by the EU and the IMF. The maneuver removes the risk of a disorderly default of Athens, the scenario most feared by market operators.
However, intrinsic weaknesses in the British economy contributed to weighing on the exchange rate. While the 'made in Germany' recovery is underway in continental Europe, the property market and domestic consumption continue to stagnate in the United Kingdom. Anemia that is confirmed by the data released yesterday by the Office for national statistics: GDP growth in the first quarter was revised downwards from 1,8 to 1,6% on a trend basis. The economic data instead confirmed a disappointing +0,5% on the last quarter of 2010.
