Falling pound
#1
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Falling pound
At today's rate the British part of my pension will be down 10% on last month's payment and with a week to go until the next payment I wonder how much further the pound will fall. I and others like me can only hope there'll be some recovery.
I just wonder how many "patriotic" Brexiteer politicans have still got their riches in sterling. If they haven't invested in property they've probably converted them into dollars or even the hated euro.
Ordinary people, whether leavers or remainers, are going to pay a heavy price for all the brexiteering which has been mainly for election purposes.
I just wonder how many "patriotic" Brexiteer politicans have still got their riches in sterling. If they haven't invested in property they've probably converted them into dollars or even the hated euro.
Ordinary people, whether leavers or remainers, are going to pay a heavy price for all the brexiteering which has been mainly for election purposes.
#2
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Re: Falling pound
I am hoping the pound will recover this week. The notoriously twitchy markets will have reacted to all the bluster of the Tory party conference last week and I'm hoping there will be a bit of a rectification in the coming days. It might only be a "dead cat bounce" but hopefully it will recover a bit.
#3
Re: Falling pound
At today's rate the British part of my pension will be down 10% on last month's payment and with a week to go until the next payment I wonder how much further the pound will fall. I and others like me can only hope there'll be some recovery.
I just wonder how many "patriotic" Brexiteer politicans have still got their riches in sterling. If they haven't invested in property they've probably converted them into dollars or even the hated euro.
Ordinary people, whether leavers or remainers, are going to pay a heavy price for all the brexiteering which has been mainly for election purposes.
I just wonder how many "patriotic" Brexiteer politicans have still got their riches in sterling. If they haven't invested in property they've probably converted them into dollars or even the hated euro.
Ordinary people, whether leavers or remainers, are going to pay a heavy price for all the brexiteering which has been mainly for election purposes.
Totally agree we had the same last month and in couple of weeks is pension day, at the moment the exchange rate is worse than last month, things are getting difficult as we don't have money in UK bank accounts or properties etc just my husband UK pension.
#4
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Re: Falling pound
I am hoping the pound will recover this week. The notoriously twitchy markets will have reacted to all the bluster of the Tory party conference last week and I'm hoping there will be a bit of a rectification in the coming days. It might only be a "dead cat bounce" but hopefully it will recover a bit.
And here we've got referendum day on 4/12. If you consider that Renzi's government rules on behalf of the rich (Italy and Europe), that's enough to understand what a Yes vote means. The Italian right say No just because they're not in the government - if they were in power they'd be all for a Yes vote. And that's what the Italian left should denounce instead of prattling on about the values of 1945 etc.
'Scuse the digression!
#5
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Re: Falling pound
Must admit, I've not been following the referendum coverage particularly closely. I understood it was to do with Boschi's proposed reforms and getting stuff through parliament more simply, is that anywhere near the mark?
#6
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Re: Falling pound
There are two problems here I think, and people will correct me if I am wrong. Firstly there is uncertainty over what the eventual terms of our exit will be and the markets notoriously hate uncertainty so they price in risk. Whether they have overdone this at a 90p euro time will tell. Secondly I am sure some people have been shorting the pound, but there comes a point where continuing this involves a degree of risk that discourages it. For the moment we have reached 90p but the euro could still go higher.
For the moment we are still in the EU and while Hollande makes his nasty threats his countries exports to the UK get more expensive and our exports to Europe become cheaper so perhaps he would be advised to keep his mouth shut.
I am sorry to have to say this, but until the terms of the exit have been finalised and the effect on the UK economy has been determined, we are in for an inevitable period of uncertainty.
For the moment we are still in the EU and while Hollande makes his nasty threats his countries exports to the UK get more expensive and our exports to Europe become cheaper so perhaps he would be advised to keep his mouth shut.
I am sorry to have to say this, but until the terms of the exit have been finalised and the effect on the UK economy has been determined, we are in for an inevitable period of uncertainty.
#7
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Re: Falling pound
In the meantime, I've spent the last 4 months kicking myself for not buying a large amount of euros earlier in the year....
#8
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Re: Falling pound
There are medium term effects to consider. The pound is falling against all currencies and that will inevitably cause inflation in the UK if that continues. If you have a UK state pension that may well result in a pension increase but probably not until April 2018.
#9
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Re: Falling pound
George........... ABSOLUTELY totally agree......it really must go to Parliament, THEY are the decision makers, the referendum was purely an indication of the people.
Therese May has a superb escape clause if she chooses to use it. The people said out, Parliament (the decision makers) said stay in (if they were to vote that way).
The result of the referendum (which was forced upon David Cameron by the media) will have massive impact on the whole of Europe.
Worrying times !
PSG
Therese May has a superb escape clause if she chooses to use it. The people said out, Parliament (the decision makers) said stay in (if they were to vote that way).
The result of the referendum (which was forced upon David Cameron by the media) will have massive impact on the whole of Europe.
Worrying times !
PSG
#10
Re: Falling pound
There are a few minor benefits of the falling pound.
There will almost certainly be some strong inflation in the Uk next year especially since the oil price is starting to increase. Bond rates are rising already and that could filter through to improved UK bank interest rates for savers as happened when we had trouble with the ERM.
Secondly any UK assets that are taxed in Italy will be worth quite a bit less this year.
There will almost certainly be some strong inflation in the Uk next year especially since the oil price is starting to increase. Bond rates are rising already and that could filter through to improved UK bank interest rates for savers as happened when we had trouble with the ERM.
Secondly any UK assets that are taxed in Italy will be worth quite a bit less this year.
#11
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Re: Falling pound
'Yes, certainly Maggie Tha... sorry, I mean Theresa May, '
The pound has been overvalued for years IMHO. Cable (pound-dollar touched 1.05 under Thatcher). Would put pound-euro at around 0.95 on an equivalent basis today. Also under Thatcher (your mention) the pound had a huge bounce. (Unlikely to happen now as successive U.K. governments since then have talked down the exchange rate - but a bit of a bounce back (not too much though) could happen.....covering myself both ways here).
So whatever.
Anyway.
Exchange rates have a hugely important influence on the financial wellbeing of an Expat. Probably the single biggest factor of volatility. Anyone selling now and returning to the UK will be big gainers whilst anyone living here dependent on an UK income will see their standard of living falling. This is fact.
And a bit tongue in cheek. Great news for estate agents with Swiss buyers and U.K. sellers. Bad news for anyone else.
The pound has been overvalued for years IMHO. Cable (pound-dollar touched 1.05 under Thatcher). Would put pound-euro at around 0.95 on an equivalent basis today. Also under Thatcher (your mention) the pound had a huge bounce. (Unlikely to happen now as successive U.K. governments since then have talked down the exchange rate - but a bit of a bounce back (not too much though) could happen.....covering myself both ways here).
So whatever.
Anyway.
Exchange rates have a hugely important influence on the financial wellbeing of an Expat. Probably the single biggest factor of volatility. Anyone selling now and returning to the UK will be big gainers whilst anyone living here dependent on an UK income will see their standard of living falling. This is fact.
And a bit tongue in cheek. Great news for estate agents with Swiss buyers and U.K. sellers. Bad news for anyone else.
Last edited by Capo Boi; Oct 10th 2016 at 11:00 pm.
#12
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Re: Falling pound
The pound has years of wobbliness to come- Get used to it- How wobbly depends on the strength of the USD and the euro. What May and her ilk want is some good old fashioned inflation which will - according to her stockbroker husband - soften the Brexit blow. So, inflation in high single figures at least, a strong dollar and a stagnant euro equals smaller pensions for all.
#13
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Re: Falling pound
Pension day yesterday. Not as bad as expected: down 5-6% on last month. We'll see what happens next month.
#14
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Re: Falling pound
I bought some euros yesterday (wife's salary still paid in Sterling, sadly), got them at a rate of 1.088. Equates to about 10% down in the last couple of months, nearer 20% from earlier in the year.
#15
Re: Falling pound
You were too hasty. The pound went up 1% today probably because the Telegraph reported that the whole Euro project is about to collapse.