missile

I can understand why the suits in the square mile don't want the euro but would it bad for those of us whose income is in £? I have seen the value of the pound in my pocket plummet against the € .... and not just since Brexit.

aidan1980

never really been more than a passing interest when I've come over on holiday, just get it and spend it. Now I want to buy a house over there it's been a real eye opener, cost being about 15% more now just because of the rate

bobd22

This always comes up when the pound falls however when it is 1.30 plus to euro people are happy with the pound. At levels of today then the difference is very noticeable and of course not that long ago it was significantly lower and could go there again who knows with this mess going on. Last time I had recently bought the house with a mortgage when I bought it was over 1.40 within 18 months it was down to near parity. In fact with the mortgage I had to have a monthly automatic transfer set up and it actually transferred on the day that the pound got very close to parity, however with the inbuilt difference I ended up getting 98 centimos for a pound, that was very worrying. I regretted then not setting up a monthly forward contract and no doubt there will be some looking back to pre 23 June thinking the same. Thing is though the government and BOE like the pound because they can manipulate I.e. collapse it when it suits them as in now.

missile

That was my point, the crooks in suits managed to scare us with their forecast of doom if we joined the euro.
If we had, I estimate the real value of my savings would be 30% more. Thanks a lot Gordon Brown.

bobd22

Yep Gordon Browns intentional devaluation of the pound added a substantial amount to my purchase. Of course once mortgage was paid off the pound recovered😬. That is where we are now all intentional money people watch every word politicians and BOE say so they know drop the odd comment in and down goes the pound. Add to that things like the other day and things can get beyond their control though. These days for me just spending money to worry about.

lucilastic

´Like many ex-pats.I am not allowed a bank account in UK as I am not resident so when I want to give cash to a grandchild or go on a UK visit I have to ask the bank for some sterling.Which I did recently as the rate was falling,got it at 1.16.Now I`m having a good cry because yesterday it was 1.11

Pulaski

You are "allowed" an account in the UK, you just might have difficulty getting the documentation to open one. Many of the BE members living in the US, including me, still have a British bank account.

I assume you had an account in the past? ..... Closing it was your biggest mistake, but some people have reported that it is easier to get a bank that you were previously a customer of, to open an account than to open an account from scratch at a different bank.

lucilastic

Very true,pulaski,however I closed my British account as I think you should support the country in which you earn your cash.I later earned some money from a property deal in UK which obviously came as a sterling cheque,would have liked it to remain in England instead I was able as a British national residing in Spain,to open an account in Gibraltar.I always declare it on my renta but it helps the Gib.economy.How daft is it that you have to present a gas bill or similar to prove yourself!High time the British Govn. went back to identity cards,we had them during WW2,& that way perhaps there would be some control on just who is in the country.The British Consulate here used to come round & we registered.That was stopped years ago.If I drop dead now in the street whilst taking out my rubbish,the only time I wouldn´t be carrying my passport,it would be up to my Spanish neighbours to say who I am!

teuchterpete

It is almost 15 years ago that one of my daughters decided to try her luck in Barcelona. She spent 2 years there before returning to the UK. Having closed her UK bank account when she left, it was a nightmare trying to open an account in the UK without a UK utility bill. In the end we had to declare her living with us and she oppened an account with our bank. We keep our UK account open for just this reason, even though they send correspondence here to Spain, and I thought Spanish bureaucracy was difficult!
Pete

scot47

It is a well-known fact that master criminals do not have utility bills.

jogger

I'm about to buy a house in Spain, so I am now in a quandary , will I buy or should I rent allowing the pound to recover , which may not happen anytime soon and then I have lost a lot of money in rent, which may be more than I would lose on the sterling, decisions, decisions......

Does anybody who knows the market have a cue what way it is likely to go.

Pulaski

Anyone who claims to know with any degree of certainty is lying. The banks with their teams of currency strategists, economists, and currency traders can't reliably predict where exchange rates will be next week. If they could they would make a fortune trading currencies, but they don't, so it is merely informed guess work.

That said, FWIW, I doubt that sterling will slide much further, but I wouldn't bet my life on it not happening.

jogger

I hope you are right Pulaski but I agree, it's an impossible task trying to predict the currency market.

amideislas

The pound isn't likely to recover in the next decade. If you want to buy in Spain, do it now. Property prices are already on the rise, and the pound and is on a downward trajectory. It will probably be at par with the Euro by end of 2017. The euro is far more likely to rise in value.

I wouldn't worry too much about the politics of brexit. Europe will still welcome British money, even if Britain closes its doors to Europe. Afterwards, the paperwork may get complicated though, and may require higher base requirements. But if you're already here, it's unlikely you will pay any penalty.

So, do it now, or forever hold your peace.

cluelessaboutetiquette

I don't KNOW what the pound will do vs the Euro.

HSBC say parity by end next year.

I think we will maybe see parity this year and maybe even 1e. = 1.05 - 1.1 for some weeks. I currently have a huge pile of euro and will buy pounds if we get 1.05 and maybe at 1e = 0.9 if better is not achieved by year end.

However next year the greeks needing German-French money crisis is back [they donated enough for 2 years only]. It's a fair bet they will try and delay that discussionto end of year due to French and Dutch elections at start of year and German elections in Oct.

As Brexit certainty increases next year [ie it becomes clearer what sort of deal can be done] I think the gbp will increase slowly back to levels that match fundamentals, ie pre-brexit vote less a bit. gbp-usd is in a decline over decades [centuries] and will settle maybe up from now but on its long term downward trend.

I suspect the pound collapse helps the brexit negotiation more than anything since France and others but especially the awful-pres-Hollande want something to point at and childishly chant haha losers thats what happen when you vote out. Currency collapse gives him that so a sensible trade deal to everyones benefit can be done without the need for punishment-noise.

Of course Deutsche bank may be allowed to collapse and then anything can happen.
Interesting times.