Fresh gloom for British residents with incomes in Sterling

[NormanH]

http://uk.reuters.com/article/2011/07/01/markets-sterling-close-idUKL6E7I11RJ20110701

""Sterling has nothing going for it - it has no yield, fiscal

problems, strikes, basically no ticks in any box."

[Bob T]

Sterling has been going down against European currencies since the 1960s. I am on a sterling pension but am not gloomy about the future, what will be will be.

I chose to live here with the knowledge that things would get tighter - my RAF pension has not increased in the 6 years that I have been here, but I will not sit and worry about it.

[NickP]

[quote user="NormanH"]http://uk.reuters.com/article/2011/07/01/markets-sterling-close-idUKL6E7I11RJ20110701

""Sterling has nothing going for it - it has no yield, fiscal problems, strikes, basically no ticks in any box." [/quote]

Norman; stop it you'll wake up Q and he'll start getting excited again. Although it's not problem for those who live in the UK. But of course if your pension comes from the UK and you live in a barrel in France, well who knows what the future holds?

[sid]

[quote user="Bob T"]Sterling has been going down against European currencies since the 1960s. I am on a sterling pension but am not gloomy about the future, what will be will be.
I chose to live here with the knowledge that things would get tighter - my RAF pension has not increased in the 6 years that I have been here, but I will not sit and worry about it.
[/quote]

Hear, hear!

[mint]

Yes, near parity and maybe heading down further.  But, whilst out shopping today, I decided that when the going gets tough the tough do indeed go shopping.

Bought some new boules on offer from Lidl:  lovely set with a nice feel to them at 12 euros and a nice bottle of scotch and some nice nibbles for French friends whom I knew were going to call this evening.

And, guess what, they brought me a big bottle of Ricard so I toasted Nadal's victory over Andy Murray and all's right with the world!

[JSKS]

For those that get by on their reduced Euro income I say good for you. Sadly, there are those for which such hubris is impossible and some will face a very tough time as prices rise and income falls.

[pachapapa]

Another "pyrrhic loss" at SW19.[I]

[mint]

Pacha, what's the difference between a pyrrhic loss and a pyrrhic victory?

Don't tell me, I think it was three sets to one?[:P]

[mint]

[quote user="JK"]For those that get by on their reduced Euro income I say good for you. Sadly, there are those for which such hubris is impossible and some will face a very tough time as prices rise and income falls.[/quote]

JK, I'm not making light of anything.  How could I?  Me who watches the exchange rate anxiously everyday.

There again, never say die............there are still many things to be thankful for.

I enjoyed looking at the newly harvested fields this evening as I took a walk with my dog and my OH.  We do not have the sort of index-linked public sector pension that they have been striking to retain.  But, I refuse to be downhearted as long as we have our health and our comparatively cushioned lifestyle.

Might as well make as much of it as possible whilst it lasts....[:D][B][8-|]

[idun]

Just in time for the holiday makers again. What will they get around £ to a €?

I hadn't realised that it had done that and have only just looked. I don't look every day, can see no point, it will be what it will be and I can never do anything about it.

[Mikep]

We had a chalet built in 1996, fifteen years ago, and I kept careful track of the exchange rates as we sent money over for the stage payments. The overall rate was 7.749 francs to the pound. That's 1.18 euros, just like it was at the end of February this year. What goes around comes around - it's been up to 1.45 and down to 1.05 since. Just try not to get into a position where you have to send money in a hurry.

[mint]

Yes, Mikep, it's a time to plan a bit ahead, if possible, precisely so that you are not caught "short" and need to exchange in hurry.

OTOH, it's always the case that, just as you have changed a wodge, a better rate comes along...

That's where the NW debit card was so brilliant.  Because you could take out only a few hundred at a time (for 2 cards), it did mean you could spread the risk over the course of the year.

[NormanH]

[quote user="sweet 17"]

Yes, Mikep, it's a time to plan a bit ahead, if possible, precisely so that you are not caught "short" and need to exchange in hurry.

OTOH, it's always the case that, just as you have changed a wodge, a better rate comes along...

That's where the NW debit card was so brilliant.  Because you could take out only a few hundred at a time (for 2 cards), it did mean you could spread the risk over the course of the year.

[/quote]

That's the Chatelaine speaking.

My usual withdrawal is 10-30 euros [:(]

[mint]

But, Norman, you can't have much in the way of utility bills with your barrel, can you?[:D]

Glad you seem on the mend and are back posting.  I have missed you.......[kiss]

[Benjamin]

[quote user="sweet 17"]

But, Norman, you can't have much in the way of utility bills with your barrel, can you?[:D]

[/quote]

Have you seen the price of tar recently?   [6]

[woolybanana]

The joints on Normans barrel are swollen by its annual dunk in pure spirits, the fumes from which keep the old boy lightheaded for the rest of the year. His invited ladies also lose any remaining inhibitions they might have had, thus enabling him to get his very wicked way.

[mint]

Er, Wools, I hate to disagree with you but I thought poor old Norman was quite a sick man?

[NormanH]

I prefer 'Ill' to 'sick' given the twisted blighters on here [:)]

[Richard51]

Sunday Times 'Money' supplement today is forecasting a deterioration in sterling against the pound in the short term (due to the increase in € interest rates) followed by a steady climb over the next three to four years back to the €1.30 to €1.40 to the £ of a few years ago.  The article cites 'leading money brokers' as saying the UK economy is stronger than the eurozone and that UK interest rates are expected to climb making the £ more desirable than the € in the longer term.

Mrs R51

[mint]

[quote user="NormanH"]I prefer 'Ill' to 'sick' given the twisted blighters on here [:)]
[/quote]

But, of course, Norman, you are proper poorly, aren't you?

Keep as well as possible and keep posting!

[NickP]

[quote user="Richard51"]Sunday Times 'Money' supplement today is forecasting a deterioration in sterling against the pound in the short term         

Mrs R51


[/quote]

Well if it's in the Sunday Times it must be true. [:D]

[Gardengirl]

Listening to the business news a few days ago, I heard 'experts' say that places such as China are buying hugely into the Eurozone area as well as Africa etc. They said they weren't very interested in UK, as Eurozone's companies etc were much cheaper. In time to come, they will own huge chunks of European business. But as so much of UK business e.g. water and electricity is now owned by European companies, maybe that means that China will be buying quite a chunk of UK business in the end.

[Rabbie]

[quote user="NickP"]

[quote user="Richard51"]Sunday Times 'Money' supplement today is forecasting a deterioration in sterling against the pound in the short term         

Mrs R51


[/quote]

Well if it's in the Sunday Times it must be true. [:D]

[/quote][:D][:D][:D]

[Rabbie]

[quote user="Richard51"]Sunday Times 'Money' supplement today is foreca/sting a deterioration in sterling against the pound in the short term (due to the increase in € interest rates) followed by a steady climb over the next three to four years back to the €1.30 to €1.40 to the £ of a few years ago.  The article cites 'leading money brokers' as saying the UK economy is stronger than the eurozone and that UK interest rates are expected to climb making the £ more desirable than the € in the longer term.

Mrs R51


[/quote]Surely Sterling is the pound.?? Where does the euro comre into this?

[Richard51]

Sorry that should have read a deterioration of sterling against the € - but I guess everyone (but Rabbie [;-)]) figured that out. 

I didn't say that because it was in the ST it was true - I was just throwing another current article / opinion into the ring.   Are only anti £ / pro € articles permitted??

As I have said on here before, anyone who invests or borrows in another currency is gambling.  You just have to decide what aspect you'll try to hedge (viz cash flows or underlying value) and make sure you have enough (i.e. lots of!) head room...because currency, like interest rates, can fluctuate wildly.  

Mrs R51