Sterling in freefall
 

Yep the pound has lost 6 cents off of its exchange value in 19 days. Nobody seems to bat an eyelid about it anymore.

On saturday we walked into Thompsons and exchanged £500 into euro for this friday. Got a tourist rate of 1.181. This morning the business rate was just 1.17. Now that is some drop in value in such a short time.

Re: Sterling in freefall
 

Sorry of i am wrong but the way I read this is that the euro has lost value aganist the pound. If you got 1.181 to the pound on Saturday and the rate today was 1.17 to the pound that means that the pound has got stronger.

Or am I reading it wrong?

Re: Sterling in freefall
 

Sooner it gets back to 1€ to 1UKP the better.. I´m trying to buy a car over there!

Re: Sterling in freefall
 

It's the other way round. You are looking at how many Euros you get to the pound so the bigger the number the better the deal.

The current problem is with the Dollar. It has dropped badly in the last few days so both the £ and the € have gained against the $. Unfortunately when this happens the $ always gains more than the £ so the £ drops against the Euro.

Re: Sterling in freefall
 

chers for the quick explanation fred, I always seem to forget about what the dollar is doing. I'm fixated on the sterling/€ exchange because of the monthly mortgage payment;)

Just because the euribor increased slightly, last month my mortgage soared by 26€. This month with an exchange rate like that its going to cost me even more, (fewer € to the £ for the guy who asked)thumbdown:

Re: Sterling in freefall
 

There is still a good exchange rate to be had at

http://www.travelmoneyservices.co.uk/

I was buying yesterday at 1.2493 But it will soon drop.
Grab it whilst you can... delivery is only in a months time.
We have used this site for a while and never had any problems.

:)

Re: Sterling in freefall
 

There is something very odd about the rates they are quoting.

They are currently looking at about 1.16 and then it suddenly jumps to 1.23 and then back down again.

The rate you quoted is higher than is has been for a year and that's the interbank rate!

Very odd.

Re: Sterling in freefall
 

The drop from 1,22 to 1,17 in a week is frightening. Most of our income is UK based and despite having a small Spanish income as well, we could not survive on those figures if they persist at that level of decrease for too long.

At a push we can even survive at parity, but there would come a time when it is no longer feasible to live with such an exchange rate.

I don’t suppose we would be alone on those ferries heading home.

Re: Sterling in freefall
 

These things come in cycles. At some point Germany (never mind Spain, Italy etc) will need the Euro to come down a little in order to remain competitive. Problem is knowing when this will happen. Spring next year is my guess, but it's only a guess

Re: Sterling in freefall
 

For years now, it’s been a strange way to live. We were stone rich with the Peseta, and the euro when it started at 1.67 to the pound. We didn’t want to be stone rich, but we did want to some stability in our lives.

We’ve got none now, we’re living in a casino world. Someone, somewhere is gambling with our money and there’s nothing we can do about it. A strange guy called Soros could be in control of my destiny, and I don’t like it.

Re: Sterling in freefall
 

I think we've been here before lets hope it settles and hopefully picks up a bit. However BOE making comments re more quantative easing won't help

Re: Sterling in freefall
 

There was a prediction that we would be back to aroound 1.35 to the £ by the end of this year, can you honestly see that happening? All I know is with the interbank rate now going up instead of being static, and the exchange rate coming down. Paying my euromortgage is going to get very expensive in coming months.

Unless of course the eurobank relents on keeping the euro artificially high as it has been for the last year.

Re: Sterling in freefall
 

I imagine they buy forward and still have some left to sell?
We've used them for a couple of years and never had a problem.
:)

Re: Sterling in freefall
 

Its the other way round, the US and UK have been keeping their currencies artificially low to help reduce their debts by quantitative easing.

The European bank has done some QE, but not at the same levels.

Re: Sterling in freefall
 

When in the last two years has the rate been 1.25 for them to trade it:confused: