The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

The weeklyFiX digest: Sterling plumbs the depths

At the start of 2008, Paul Day, deputy head of research at MIG Investments, predicted that sterling would be the dog of the FX market in 2008. He reckoned that it would plunge to parity against the euro – a prediction that many thought singled him out as being barking mad.

Technically, there might well be a currency that has performed worse, but there’s no denial that sterling has been giving a right kicking against the yen, dollar, Swiss franc and euro. As sterling plunged towards parity with the euro, the UK press went to town. On December 15, euro/sterling was quoted as high as 0.9022, which equates to almost exactly the 2.1675 historical sterling low against the Deutschemark, set way back in 1995. Whether it can recover from here looks doubtful, although as strategists from BNP Paribas point out: "Although the news from the UK has remained particularly negative, we now expect the outlook for the eurozone to deteriorate just as rapidly. In the era of relative devalue trading, it’s all about which ‘asset’ stinks least." 

Sterling: Nothing to woof about

Published in the weeklyFiX 05 Dec 2008

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?