The outlook for the exchange rate against the pound

[NormanH]

An article in the Telegraph:

http://www.telegraph.co.uk/finance/personalfinance/12027406/Should-I-buy-euros-now-or-will-the-pound-get-even-stronger-in-2016.html

I was surprised to read from a very anti-Euro source:

"Britain has the worst current account deficit in the developed world,

now running at more than 5pc of GDP. The eurozone has a big surplus.

Sooner or later, fundamental economic forces will bring the currency

markets back to reality. "

[halfblind]

Cut the head of a live chicken and see whether the body runs clockwise or anti-clockwise, throw your grannies false teeth in the same direction and if the top row faces east then the euro will weaken.[:D]

[Quillan]

On Tuesday I put a five figured UK cheque in to BNP and they gave me the money that night in Euros. I guess they did the credit so quick because the cheque was from HMRC. I got 1.423 Euros to the pound and they charged me 11.30 Euros for cashing it. On Friday at close of day the rate was 1.389, that's no guessing just fact. The change in rate was apparently something to do with the ECB but what do I care. Only problem was I had committed to buying Mrs Q a new settee suite. Easy come easy go I suppose. Euro/Pound, it's like betting on the geegees, some you win, mostly you lose and the taxman gets his cut just the same.

[Patf]

I read an article in last week's Sunday Times saying that the ECB is planning a 600 billion€ injectioin (QE) into the euro economy. So if that happens the euro will be even weaker against the pound.

But if we feel the benefit, as Q says, the taxman will be waiting for his share.

[idun]

LOL Patf, that is what I have always said whilst we were benefitting from a strong € that the Chancellor was getting 20% of the extra.

I always worked it on the € to the £ being like 10ff to the £, which would be 1.52'ish, wouldn't it??? Exchange rates, lived with the highs and lows and always budgeted for the worst case, which I always looked up as good old common sense.

[JohnFB]

sorry Idun don't quite get what your saying. Have you got that round the rightway. I think maybe the inverse would be true.

JFB

[idun]

What inverse? .657/1.52 depending on how one likes to see the exchange rate.

Ofcourse, I'm sure if it were that sum there would be lots of posts about it, maybe even gloating......... even though none of us can do anything about exchange rates, and frankly there seems so little  rhyme or reason to them, other than them plucking a number from a bucket as in a prize raffle draw!

 We would be worse off, but there again, we'd be paying less income tax and I have budgeted for such an eventuality.