Euro against at 1.4958

[Baz]

The has dropped to its lowest level against the Euro and as at 17.30 UK time the bank rate was 1.4958. The concerns must know be that falling below the 1.50 level is it going to go into free fall. The pending Iraq situation and low UK interest rates may not bode well at the present. Although this is good news for sellers of French Property but for the buyers it could become expensive. For anyone trying to complete sales in France currently or in the near future a discussion with your financial advisers might be prudent and forward purchase of currency may be a possible consideration at least to fix a known exchange rate.

I would like to think that when Iraq is sorted, that a strong recovery in world stock markets may be seen and then the pound gaining strengh against the euro could well take place.

These are only my personal views, but I hope this cautionary thread may be of assistance.

Baz

[val2]

This goes to show how people who have retired to France on small pensions being paid from the UK should watch their finances carefully for the forseeable future. This happened in 96 when we only got 6F - 1 and a lot of people had to return because they couldn't afford the lifestyles they were used to.

[magex]

I am looking forward to 1.20 or even parity.

[swallows]

My thoughts exactly! I am just wondering how far the UK sterling will slip. As someone wishing to buy in France in the next 6-12 months I am more than concerned that my 300K estimate purchase will cost me 18,500 more than if I had bought at the start of the Euro last year!

On another issue those retired UK expats must be feeling the cost in their pensions when converted to Euros.

Any other forum readers have thoughts on this matter?

Regards

Mark