0zeb100ddMMyyyy0Falseen-USTrue Posted April 27, 2006 Share Posted April 27, 2006 HelloThere seems to be a steady decline of the pound aganst the Euro. Could this be the beginning of the long awaited realinement to say 1.20 or dare we wish 1.10.Have a nice day y'all.[:D]RegardsSidney Link to comment Share on other sites More sharing options...
powerdesal Posted April 27, 2006 Share Posted April 27, 2006 Zeb,I sincerely hope not, at least whilst I still have financial assets in pounds !My hope is a strong dollar (US) as thats effectively what I am paid in.The Euro can be as strong as anything after retirement but until then - please no!!!!! Link to comment Share on other sites More sharing options...
Andyphilpott Posted April 27, 2006 Share Posted April 27, 2006 The following comments are only my humble opinion on the subject so to those who I uspet - sorry in advance!I hope not for the sake of those depending on tourists from outside the Eurozone in France and all those involved in it - (just look at how travel to te US has jumped since the dollar started to fall), UK pensioners living in France on sterling income, those engaged in exporting anything from the Eurozone and anyone who exists (or is fed by anyone) on anything other than the Euro.My house in France will be worth loads more in sterling terms but that is only paper money, not real spendable cash. Selling it will still give me the same amount of cash to buy the same things in the Eurozone, although much more purchasing power outside the Eurozone. A very selfish view of things really, without much thought to the way it would affect others who remain in Euroland.The downsides for a nation overall to an overly strong currency are well publicised - unless you have protectionism (i.e. contrary to world trade) then the stronger your currency the harder it is to sell overseas. I thought we learned that lesson well some decades ago culminating in the devaluation of the pound.So who benefits from the Euro at 1.10 against sterling? UK exporters to the extent that they cut back imports from the Eurozone, resourcing from cheaper producers, and increase sales within the Eurozone as the same goods are cheaper for those paying with the strong currency. (My wife would be delighted as she is in manufacturing and a strong pound has certainly hindered exports). French people holidaying in the UK. House owners in France who want to sell up and return to the UK. Eurozone business who want to invest in the UK. I am hard pressed to think of others.I am certainly no economist or expert of any sort and this response has not been subject to massive research but I hope that you get my drift. Maybe I have got it all wrong!Andy Link to comment Share on other sites More sharing options...
andyh4 Posted April 27, 2006 Share Posted April 27, 2006 Since the majority of my pension savings (and probably most of those on this forum) are still based on sterling, this is not good news for me. As Andy says most of the benefits are illusary unless you intend to sell up and move out. Link to comment Share on other sites More sharing options...
Baz Posted April 27, 2006 Share Posted April 27, 2006 [quote user="zeb100"] There seems to be a steady decline of the pound aganst the Euro. Could this be the beginning of the long awaited realinement to say 1.20 or dare we wish 1.10.Sidney [/quote]I am surprised that you could think this could be the start of the realinement of the pound, for what possible reason? The currency has fluctuated between 1.5126 and 1.4237 during the past year on a regular up and down basis. Why would you expect in the foreable future that it may drop to 1.20€ or even 1.10€. The money markets can be near or impossible to predict but with todays level of 1.4398€ I do not think it is time to worry as it is within its current normal limits. For more detailed figures have a look at this BBC webpage:http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/currency/11/13/twelve_month.stmBaz Link to comment Share on other sites More sharing options...
Nick Trollope Posted April 28, 2006 Share Posted April 28, 2006 When the Euro was introduced, the £ was set at 1.40€, which is more-or-less where it has remained for the past 7 (?) years. I think that 1.10€ is impossible. If that happened, then where would the $ be? 50 centimes? Link to comment Share on other sites More sharing options...
chirpy Posted April 28, 2006 Share Posted April 28, 2006 If anyone could acurately predict curreny changes they would be billionaires.!!!!!!!!!!!!!!!!Who knows when the next rise or drop will be in 6 months?That is why if you buy money at a rate fixed for a long time you do not get today's rate.I hope things don't get worse but there is very little the general public can do to alter the financial changes.It is difficult enough for the governments to organise it and unless there is a war then curreny will go up and down like a yo-yo depending on many factors of life and world markets such as oil being one of the main guides to how things will go.[:'(] Link to comment Share on other sites More sharing options...
Anton Redman Posted April 28, 2006 Share Posted April 28, 2006 [quote user="zeb100"]HelloThere seems to be a steady decline of the pound aganst the Euro. Could this be the beginning of the long awaited realinement to say 1.20 or dare we wish 1.10.Have a nice day y'all.[:D]RegardsSidney [/quote]Last time I looked only 1 in 35 Euro to Sterling currency deals were real as opposed to speculative. Sterling always ( last 8 years) declines for spring thorough summer then recovers on September when Brits stop going abroad. Sterling Euro rate seems about right to me. When £ 1 = 12 FF loads of things we much cheaper in France as £ 1 = FF 7 loads of things much cheaper in UK. Apart from wine, and even that is explained by tax, not much arround whihc is work bringing in or out of UK ot make money. Link to comment Share on other sites More sharing options...
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