Fredbargate

US Dollar First day of trading 2021 = 1.35 ..........2022 = 1.35
Euro First day of trading 2021 = 1.1294 .............2022 = 1.1897

Lynn R

Funny that, when it went down it either wasn't because of Brexit or sterling was overvalued anyway and it would make British exports cheaper. Now it's gone up it's a benefit of Brexit and never mind that it will make imports to the UK more expensive (as well as slower and more expensive because of the extra checks which should have come into force from yesterday for goods coming from the EU - already postponed twice because the UK couldn't manage to get the necessary infrastructure ready and have the staff recruited and trained in time to put them into effect on the date in the agreement they negotiated and signed).

Stingychips

UK will go for a Norway kind of deal when the conservatives get outed.

EU.flag

Benefit of brexit ? What a wild statement, if it was it would have jumped year ago.
Rise is due to no new c19 restrictions in England. brexit brigade never sleeps.

Lynn R

The irony obviously went straight over your head. Fredbargate was implying that it was a benefit of Brexit, not me.

agree_to_disagree

It would be useful if we could just inject a few facts into this discussion!

Refer to the graph and the collapse in sterling that happened due to the no vote in the brexit referendum.

Day to day and week to week changes in market sentiment which cause sterling to hover between 1.15 and 1.20, DO NOT CONSTITUE A RECOVERY IN STERLING, to its pre-brexit levels.

olivefarmer

The Euro still has to survive Greece and Italy. It all went quiet during Covid but has not gone away. I believe the ECB is pumping money. It will be interesting to see what happens when the Spanish 6+% inflation kicks in. Mind you, won’t be as bad as Turkey!

agree_to_disagree

Just in case you weren't aware every central bank has their money presses running hot, including the UKs! The debt accumulated due to Covid, make bailing out either Greece or Italy, which in itself is speculation, pale into insignificance!

But as you are suggesting that Greece and Italy represent imminent threat to the financial stability of the EURO, perhaps you could back that up with some numbers along with a timeline with key dates?

I find these predictions of the imminent demise of the Euro or the EU tiresome, and these usually emanate from a particular quarter...

Fredbargate

Lynn do you think you can read my mind?

Or was I just quoting facts?

Fredbargate

Fact, when I bought my first and second properties in Spain the exchange rate was £1 = €0.67 or 112 pesetas

So has the UK has come a long way £ more than doubled in Value or has Spain has lost

Joppa

The main reason why Sterling is outperforming Euro is the hawkish stance taken by the Bank of England over raising interest rate to counter inflation, while the European Central Bank seems in no hurry to do so. Against market expectation, BOE raised interest rate in December and is expected to do so again in February. Brexit is on the whole negative for Sterling, but the market takes the view that UK and EU will come to an amicable agreement over remaining sticking points, such as NI Protocol and fisheries. Should UK trigger Article 16 to set aside parts of Brexit agreements, that will hit Sterling hard.

agree_to_disagree

HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 0.25%. The Bank of England Monetary Policy Committee voted on 16 December 2021 to increase the Bank of England base rate to 0.25% from 0.1%.

This is "halkish"???

I just make a quick call to Cambridge Dictionary, that they need to redefine 'halkish'...

Stingychips

Good for potential holiday makers to Spain. But being triple jabbed is enough to put a lot of people off going. Hopefully these restrictions go before holiday season.

Joppa

I wrote hawkish. Market acts on perception rather than the actual figure. If they think BOE will continue to raise interest rates, sterling will be supported, and currently the thinking is that interest rate diversion will widen between UK and EU. Latest pronouncement from ECB is interest rate rise is unlikely in 2022.

SanNico

I think it would be better compare like for like and in the present day. In 1999 I bought a house in the UK for 4 times my salary. The house price is 4 times higher. The salary for the same job is only about 50% higher. That means the cost of that house would be 10.67 times my salary. How would the Spanish houses compare using your salary then and the salary for the same position today?

For example what you can buy with 1000 GBP as opposed to 1189.70 Euro. The exchange rate changes are minimal for all but the richest and poorest in society. The difference is apparent for those drawing Sterling based pensions but again they need to have a baseline. Many looked at their pensions and realised that 1000GBP went a lot further in the EU and the fluctuations in between make very little difference when compared with what they could get in the UK.