Helen1964

I'm in euros. And waiting for sterling to drop further so I can move funds to the UK with a view to buying a house at some point.
Any guesses about how low the pound is likely to go against the euro?
Mind you, any gains I make on the exchange rate are probably going to be offset by the continuing rise in house prices in the UK and changes to stamp duty.

not2old

I'll pick a number for you - 1.20

At present its in the 1.28 range, down from the 1.45 in the most recent past

XE.com - GBP/EUR Chart

Is 1.28 a good number for you?

rebeccajo

Ya, well, I should have been more clear and said purchasing parity. I recall a discussion many years ago in another community where it was stated that "normalish" purchasing parity between the UK/US is generally regarded to be around $1.62 (in dollars obviously).

Novocastrian

An excellent observation and one very relevant to this forum.

Editha

It seems to me that there is no certainty at all that the pound will drop further. The market is reacting to the campaign, and nobody knows how that is going to go.

In a couple of weeks the polls could be saying that the Brexiters are ahead, with the result that multinationals start packing their bags and preparing redundancy notices, while there is a run on the pound. Or on the other hand ....

not2old

right now its being shorted long at 1.78. Could that be an indicator?

https://www.tradingview.com/chart/GB...Shorting-Plan/

Novocastrian

Some of us don't have that choice. My "wealth" is about 10:3:1 UKP: Euro: $Cdn, but my non-investment income is about 10:1 $Cdn:UKP. My expenditures roughly reflect the "wealth" ratios, not the income ratios.

Given that forex rates don't directly effect wealth but can strongly effect income I'd always prefer a tanking pound (vs the $C).

Novocastrian

Err, that "plan" is over a year out of date.

rebeccajo

I agree there is no certainty. But, at least as far as US Dollars are concerned, the pound has been falling against the dollar for a while now, and there was no improvement after the Tories were re-elected. Indeed it has fallen further.
Both economies are improving so, if there were confidence in social and political stability, we should have purchasing parity. But we don't.
Like it or not, pound sterling is tied to the euro in the markets, at least in the eyes of traders. And the Euro has been falling against the dollar for a while too. But, since last weekends announcements, it has not taken the hit that the pound has.
Brexit won't change this, since Britain wants to stay in the shared market. Everybody throwing their toys out of the pram is going to cause instability for quite some time, IMO.

Editha

I don't understand that. You can't leave the EU and remain in it. And if we leave, our trading with the EU will be regulated by the EU. What we want won't cut much ice.

spouse of scouse

I used to have that problem too, but I got this fantastic new face soap and that's helped a lot

Novocastrian

Well, duh!

Novocastrian

You should update your avatar.

spouse of scouse

Perth

I was just thinking the same thing, rebeccajo. In addition to that, our home value has been rapidly increasing for the past year, with projections to continue through at least the end of the year. Sometimes there is a reason why things don't go as we hoped and our plans are delayed