paolosmythe

I suspect that there is a deliberate effort by the Bank of England to devalue the Sterling, so as to inspire foriegn trade and investment in the UK to sustain activity through current economic times.

Point is, the £ is now becoming under valued, even when compared to the currency of countries who have now exited recession, such as Canada.

As with most variable trends, peaks and troughs will settle down around a 'happy medium'.

I just hope that this happens sooner rather than later, because i still have no Canadian income and will be needing to move more £s over here before long.

thesidds

so I'm house hunting here in BC - but my deposit is still in £'s. At this rate we're going from an acreage to a trailer
With the housing market starting to pick up over here, I really don't know what to do for the best??????

craig25

can anyone say whats going on or has got a good idea if it will keep going down ?,or would anyone know this,i have noticed everytime the gas goes down here in canada that the pound drops against the dollar,i am interested in why its happening

Dave+Jules

1.68660 holy cow I guess I won't be moving any pension funds over for a while.

The reason it is falling and will probably continue for a while (especially if other governments start to raise interest rates) is the realisation that the UK is in such a bad way and the near zero interest rates mean there is no incentive for buying pounds or saving in UK banks. The sad thing is the UK isnt the manufacturing base it once had so there are not lots of goods to sell at a competitive price.

Gold is roaring ahead because of the rush to it's safety (apparently two oz of gold in Roman times would kit a gentleman out head to foot) at $1000 per oz I think a decent set of kit could be purchase for 2oz of gold today. Now after 2000 years that is what I call inflation protection!

Dave+Jules

I wonder if the UK is seen as a Petrol based currency (I wouldnt have thought there was that much left in the North Sea). That might explain it.

paolosmythe

one other (slightly conspiratorial) reason for why what is happening is happening.... is that the UK is being 'softened up' prior to joining the Euro currency.

afterall if it continues to decline in value, but as part of a unionising deal, the UK is offered a sale of the century rate for Euros.... there isn't likely to be much opposition, especially if people are allowed to feel better off in real terms.

if £1 = C$1.20 but €1 = C$1.80, would you shrug off an offer of €1 for £1?

i am convinced that such a scheme is underway in the USA to facilitate greater favour towards the Amero concept.... even if it means sacrificing the mighty green back.

America has done well to sustain the US dollar as the global currency, but certain nations are leading the call t suspend such a status quo, gold is regaining popularity and of course China is marching to the beat of its own drum.

basically, the step preceeding true one world authority, is the realisation of a tri-polar market.... there is strength in numbers and such strength will draw lines along Europe / North America / Asia territories.....

but sure..... its coz Gordon Brown is a buffoon

JamesM

As long as the interest rates remain low and the Bank of England continues to print more money the £ will continue to devalue. Britain is not booming outside of the Eurozone anymore and all the "Hot Money (speculation) has long gone.

It will get worse possibly after the next election when if we do appear to have got out of recession- we fall back in because who ever wins has to start making all sorts of public spending cuts.

It is a kick in the nuts for anyone who has lived sensibly and saved or is looking to move their £'s.

Personally I am gutted as it means when I move back over over my money will be remaining in the UK for quite sometime.

Southcote

Please book soon - I still have money in Sterling !

johnh009

Here is one point of view:

http://www.thisismoney.co.uk/exchange-rates

However, as Paolosmyth says, they could be softening everyone up for entry into the Euro.

TheBear

$1.65 !!!!! The Canadian dollar is doing particularly well against the pound at the mo, and other currencies. I'm reckoning they're going to follow Oz and raise their rates as they have one of the strongest economies in the western world...get ready for $1.50 everyone! (almost parity with the US $ and loonie)

johnh009

Unemployment is still a major issue and, in Ontario, the unemployment rate is more than 9%. Raising interest rates will slow down the construction industry which seems to be one of the few areas that is active at the moment. Chances are, in this part of Canada at least, they will have to wait until the US economy recovers.

However, yes, the rising Canadian dollar (or falling pound) is not good news for those coming to Canada from the UK. But for those going the other way....

Paul Wildy

bsmith - I'm not sure that I'm following you. I'm not touting for business if thats what you're suggesting. I was offering an opinion based on first-hand personal experience of having made the move. You may not be aware but there isn't actually a shortage of people who wish to leave the UK at the moment!

Dave+Jules

I would imagine there is a queue stretching for mile. I was amazed at how many people attened the emigrate shows in 2003/4 and 5 (we left Nov 05). It seemed whatever day we chose the show was always busy.

ann m

For those of us that waiver occasionally - the exchange rate should definitely be taken into consideration.

The difference in what we brought in May 07 to if we were to exchange this week is $155k

On the other hand, if I were to return next week, I'd only be about $20k down - even after living here and spending loads

It might be considered a jammy relief if the exchange rate went in one's favour (for once).

Alan2005

1.63 today. Though that will be on low volumes as today isn't a trading day for CAD. Still 1.50 doesn't look as far away as it once did...