GBP v Euro

This may be a rather basic question, but why is the gbp so weak against the euro at present. I assume that the credit crunch is affecting all of Europe. Can anyone explain the major factors that are making the euro strong or the gbp weak?

hi

Wats as gbp

Re : GBP v Euro

GBP is the British pound, Emma.

The reason that the pound was devalued compared to the Euro was that people thought that the UK was in a weaker position relative to the Euro as that is backed by so many countries and considered too big to fail.

However that has now changed and the pound is doing better against the Euro, not so much because the UK outlook is great after Labour ruined the country, but more because the Eurozone is seen as very weak and at great peril with things like the Greek economy going completely wrong and warning signs in other countries such as Spain etc