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Sterling weakens against the Euro


Sprogster

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I dont know why people get so excited about passing through a round figure, the pound, or should it be the €uro, probably both, has been remarkably stable for the last 18 months, never varying more than a couple of pence in the fluctuations, now it has passed through this magical figure lots of doomsayers think it is going to fall 20%?

I would remind you that when it went through the £1.20 on its way up an equal amount of people were saying that it would quickly reach £1.50 again.

I learned a long time ago that apart from some physical things looking at a graph of what has happened in the past and projecting the line forward is stupidity, the future depends on future events and variables not past ones.

That said by nature I am the one with the glass half full but even I didnt hope for a return to £1.50, I was just very pleased to be at £1.20 and still am [:D]

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Quite simple answer to your comment Chancer, there's a couple of people on this forum who obviously converted all their National savings books contents into Francs/Euro years ago, and twitch every time the pound go's up then get very excited when it goes down. I'm surprised that the prophet of doom from the southern regions isn't regaling us with tales of the pound sinking deeper than the Titanic, but I'm sure he'll be along soon. Like you Chancer I just go with the flow; but then my income and life isn't dependant on currency fluctuations. [:D]
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I'm going to stop listening to "experts", too, and go with my own feeling in future.

I was about to switch a chunk of sterling into Euros at 1.29 when an accountant friend (former friend) assured me that I would do much better by waiting a month or so when £ would be nearer 1.50.

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As has been said many times before - and god knows why I don't listen to my own advice - if the experts knew what was going to happen with currencies, they would all be too busy making millions for themselves by trading their own cash back and forth, rather than advising others.
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I think the exchange rate is a big deal to a lot of Brit retirees in France and Spain who are reliant on a modest sterling pension income.

On the plus side those thinking of selling and returning to the UK, will get more £'s for their Euros.

That said with a rate below 1.20 Brit interest in buying French property tends to tail off rapidly if the past few years are anything to go by, so selling a rural French property might get even more difficult.

Some posters have advised in the past those thinking of retiring to France to budget at £ to Euro parity and I think they are absolutely right as a rule of thumb.

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As our only income is in euros and we live in the UK, it affects us too. I learned a long time ago to just accept and that it will fluctuate and that there could be enormous fluctuations. So before we moved back, fully understood that we would have to live with it.  I cannot say that it wouldn't be hard for us if the £ gets really strong again, it would. 

Parity? it was getting that way, but that felt wrong to me, to be honest. I always found £1 to 10ff seemed reasonable, but ofcourse the euro would have to weaken a lot to get that way again.

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Sprogster's original post seems unnecessarily gloomy to me ............ well at least I hope so!

At 1.19, we're back to where we were in the first few months of 2012.  What happened then?  The start of the Eurozone crisis and the gradual strengthening of the £.  For the moment I'm a happy bunny, having bought our yearsworth @ 1.25 in Late-July (when the interbank rate was 1.285). I said to myself at the time that I'd be very lucky to get that again.

However, have things really changed in the Eurozone?  OK, its all gone quiet-ish for the moment, but the underlying problems haven't gone away. My guess is a levelling out in the high-teens.

Anyway, as Alan Z says, there's SFA that we can do about it.

 

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[quote user="You can call me Betty"]Currency moves up and down,

OK, no problems with that.

 Pope revealed as head of Catholic church, bears use woods as toilet facility...

Pardon ? sounds like the Frenchmans toilet from here. Only that ain't just the woods...

Whatever next?

[/quote]

I know very little about the working of the devious minds in the money trades, but a long time ago I learned the definition of an expert.

An 'ex'  is a has been and a 'spurt' is a drip under pressure.

Ring any bells here? [8-)]

Just noticed Betty !!!!! The Pope? Is he still around ???

The € will do what the little boys who sit in their silly hats in the various trading places want it to do when they are throwing their various toys about and the like of me will just have to sit and hope that they land back in the various cots.

Sorry if I sound flippant in this, so very serious, post but the thought that companies that sit on their fat asses and have the names like 'SubStanded and Poorer' who have silly little tarts who, at the stroke of a pen, can declair not just companies around the World, but whole countries totally bankrupt?

Who in their right mind are these clowns?

The Kings New Clothes come to mind? These dozy, stupid little nobodies can destroy not just people, but whole countries !!!

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  • 2 weeks later...

£ now down to 1.16 and looks like weakening further. Hopefully, not a sterling crisis looming!

Interesting article in Sunday Times saying that introduction of French social charges on foreign second home owners who rent or make gains on selling, which HMRC have ruled as not UK tax deductable, combined with plunging £, has killed off beginnings of renewed interest by Brits in French property. But good news for those Brits thinking of selling if they can find a buyer, as they will now get more £'s for their euro sale proceeds. 

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Well there wont be any tax problems for people selling, as it's unlikely many will be showing a profit. Also no problem for me as I'm not selling? OK my holidays are going to be a little dearer, but by the same token so will those for everybody else who lives in the UK no matter where they take their hols. It goes up it goes down, so what? thats life I just find it very boring, but a subject much loved by the ex-pat integrated mob, most who I suspect have their pensions in Sterling. If you think  Sterling is in trouble take a look around any French town and see how many business's and restaurants are closing down, that is trouble with a capital T. There will be a lot of French staying at home holiday time. [:(]
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[quote user="idun"]Well I believe that once Greece, or where ever wants to put back their repayments, then the € will be affected and will go down in value.

[/quote]

Now that the French Finance Minister has stated that France is bankrupt ...........How is that going to affect it ?

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[quote user="Jako"]None closing here (87), but many new shops opening. The pound is gathering momentum towards it's predicted € 0,50 over time.
[/quote]

That's brilliant Jako my old mate as they will need extra shops to sell the very competitively priced British imports, which will make a change from the normal French tat. Also after your forecast exchange rate I've had a rethink overnight; and will now sell my holiday home when the rate reaches £2 to a €1, That will allow me to sell for the price I paid ten years ago so no tax to the French, I will then trouser a nice bit of extra dosh on the exchange rate, which will go under the mattress and finance a new lock up in west London and plenty of stock, which I will be able to flog in Calais when I come over to fill the transit with beer.Triffic! [Www] [Www]

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You should realise that by that time inflation will have degraded the purchasing power of sterling even more than the fall of the exchange rate. Keeping your money in € would be more advantageous.

What British imports are you referring to?

I have not ever seen a ' made in the UK'  sticker in my life (lived in France,Germany,Holland) on any product, let alone bought it.

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[quote user="Jako"]You should realise that by that time inflation will have degraded the purchasing power of sterling even more than the fall of the exchange rate. Keeping your money in € would be more advantageous.

What British imports are you referring to?
I have not ever seen a ' made in the UK'  sticker in my life (lived in France,Germany,Holland) on any product, let alone bought it.
[/quote]

Well jacko pal you've obviously led a very sheltered life, and you don't know what your missing? [:D]

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