Re: Sterling in freefall
 

It is indeed!

Everyone is selling USD and the only currency they are buying is EUR and GBP - the YEN is likely to devalue so that's not a good deal.

Unfortunately the EUR is more popular than the GBP as a safe currency so the majority of the buying is going to the EUR - as a result the GBP/EUR rate is suffering even though it is doing well against the USD.

Re: Sterling in freefall
 

Is this the same company? In which case, yes, it was too good to be true!

http://www.thisismoney.co.uk/bargain...n_page_id=1093

Re: Sterling in freefall
 

Yeah. and I bet they were one of the sites recommending this company recently!

Pound to Euro 1.149 on the news....demonstrates what the "experts" knew when they were predicting 1.25 to 1.30 by Autumn:thumbdown:

Re: Sterling in freefall
 

It's actually at a critical point right now - next few weeks will tell the tale.
"Experts" are simply trying to promote their own hedge funds. If they get lucky on TV with their call, think how much money gets funneled into their hedge fund all of a sudden because people think they are experts.

Re: Sterling in freefall
 

I think Jacky was talking about certain "experts" on here, who were predicting a rise in the pound merely because the Conservatives came to power after the election:unsure: To be fair to them, the Lib Dems are involved too, so it's probably Cleggy's fault! :o

Re: Sterling in freefall
 

Just generally really, some of the finance forums were saying it too. I think everyone thought that it would be like the old Thatcherite days when the pound was strong. I didn't think this fall would happen though. Maybe because it's not a true conservative Government. Someone said on TV tonight "It's NOT a conservative Government it is a coalition Government of Liberal/conservatives with the emphasis being on the LIBERAL."

Re: Sterling in freefall
 

I did refrain from replying earlier but this report and statement expected today, actuallly says exactly what I was getting at a few post back...

http://news.yahoo.com/s/ap/20101007/...interest_rates

The euro being so strong is damaging europes abilility to function and export. Lower its rate and things will get better and of course give us a better £/€ exchange rate into the bargain.

Will it happen? nope I don't think so..

Re: Sterling in freefall
 

It seems as though things are beginning to unravel in the UK. We've just found out that UK house prices fell 3.6% in September, which is apparently the biggest fall since the records were compiled. What that means for the wider economy is open to debate however.

http://www.bbc.co.uk/news/business-11491015

Re: Sterling in freefall
 

A word of warning to those with a nervous disposition: Do not check the exchange rate today!

Re: Sterling in freefall
 

Yes you are right in this repect

You used the phrase "the Euro is spiralling out of control" which made me think you meant the Euro was getting weaker when it fact it is getting stronger against the pound and dollar.

There are ups and downs to being relatively weaker or stronger in any currency, but it is a big jump to say the Euro is in a worse position than the pound or dollar at the moment. They are all scr*wed, it is a matter of degrees.

The pound is approaching 1.13 euros this morning, will it go any lower!?

Re: Sterling in freefall
 

Today is full of housing news, interest rate decisions, etc.
Suggest you check Monday when it has settled.

Re: Sterling in freefall
 

Unfortunately, I did........I believe it will be worse before it improves.

I did read, a week or so ago that besides the difficulties between the US dollar and Japanese yen, there are other currencies, especially the South American ones which are not helping matters, as the are trying to stabilise their own countries wows. Not sure if this is true, but it maybe another factor in why the euro is so strong.

Re: Sterling in freefall
 

On the other hand another building society says houses have increased 0.1%:lol:

Think the pound/euro may be really heading for parity.

Re: Sterling in freefall
 

The trouble is, of course, that we’re living longer (I’ve just heard a government minister say so).

I think it’s a forward projection. The poorer we get, the less fatty and expensive foods we eat and growing our own vegetables can only be a good thing. And we won’t be able to smoke or drink. No wonder we’re all going to live longer.

With the pound at parity, I’ll be brewing my own wine too, is there such a thing as carrot wine? I’m already looking around for a wine-making kit and I wonder of I can grow tobacco plants? I know you can grow the nasty stuff, a Spanish guy round the corner has got a greenhouse full of it. He’s the happiest man around.

Re: Sterling in freefall
 

graph for the last 12 hours

http://www.xe.com/currencycharts/?from=GBP&to=EUR

Re: Sterling in freefall
 

The one month figure is even more startling on that graph. Then take a look at the one year one also. We are almost back to the point we were 12 months ago. After getting everyone's hopes up that the £ was on a gradual climb back, the last month has seen it getting kicked in the teeth again.

Re: Sterling in freefall
 

The 10 year graph is interesting, the rate hit 1.73 in 2001:ohmy: No wonder we felt well-off then and things were much cheaper too. Seems to have been 2008 when things went wrong.

Anyone who bought at those rates and want to sell could still come out without a loss even if they reduced by 30%

Re: Sterling in freefall
 

What was the exchange rate for the £ when the Euro was first introduced?

Re: Sterling in freefall
 

As an expert, I can tell you it (the euro) will fall back down over the next 2 weeks and on :) same as the stock markets.

Re: Sterling in freefall
 

Simple reason why the £ weak and € strong. Uk base rate 0.5%. ECB base rate 1%:eek:

Now if you're an international bank wanting to earn a bit of interest where do you stick your money. UK? or Euro?;)

Yes, you stick it in the euro

And to do that you buy trillions of euros and sell trillions of pounds:sneaky:. And therefore the euro is strong and the pound weak.

Once UK rates go up to eurozone rates (one or two years) the exchange rate will soon get back to the 1.30s or above.:fingerscrossed:

Until then keep the champagne in the fridge and stick to the cava.:rofl:

Re: Sterling in freefall
 

It depends on your point of view.

Today the GBP hit an 8 month high against the USD.

We are all paranoid about the GBP/EUR but the currency markets see it differently.

People are selling the USD and buying GBP and EUR - the problem is they are buying more EUR than GBP.

Re: Sterling in freefall
 

we are all paranoid about the GBP/EUR but the currency markets see it differently.

Paranoid may be wrong choice of words given that we are exchanging £ to Euro for whatever reason so it is understanable that we as in people living or with property in Spain are not realy that bothered about the Dollar even though that may be the catalyst for our problem.

Re: Sterling in freefall
 

I think Fred might be right about being paranoid. I think I am. Perhaps there is a reason.

I have a decent income, but most of it is in pounds. Since 2008, my income has fallen around 30 percent. My outgoings have stayed the same, although shopping has become cheaper, but that was immediately offset by higher utility bills and taxes.

I’ve also gotten used to the better exchange rate for the past 15 years or so. Jackies graph from 2001 brings tears to my eyes.

What is really frustrating is that we are all rabbits blinded by the headlights. We can see the car approaching but we just sit there until it hits us.

The car bearing down on me is still a distance away, and I hope to hop away in time. I worry about where I’m going to hop to.

Re: Sterling in freefall
 

I'm also in that situation and I'm just as paranoid as anyone else. I check the currency rates more often than the weather forecast!

The trouble is there is nothing any of us can do about it.

Re: Sterling in freefall
 

And again everyone ignores the real problem of peak oil and peak population. Do your own fact finding. The planet cannot support the amount of people and that has the biggest effect on the world economy. Fact!!!

Re: Sterling in freefall
 

When George's spending review becomes public ( I understand around the 20 Oct) we should see a market reaction reflected in the exchange rate. At this moment though, it's hard to say in which direction?!

Re: Sterling in freefall
 

Sorry yes we are paranoid re Euro, the dollar is of no intrest to me is what I meant realy. As for dodging the headlights I feel more like an hedehog as they always get splatted.

Re: Sterling in freefall
 

When hatchet-faced, hatchet man George announces the spending review on 20th October, we are all hedge hogs.

Re: Sterling in freefall
 

Well that depends on what the markets make of it.

If they think it will solve all the problems then the GBP will rise - if they don't like it and think that the country will descend into anarchy then we need to fear for the GBP.

It could go either way.

Re: Sterling in freefall
 

I agree - thats also the problem re the so called global warming issues!

Part of the currency stuff is something to do with China buying European bonds and helping the PIGs out, pushing Chinese manufacturing, refusing to devalue their currency and having underlying financial squabble with the US Dollar! Summat like that

Jo xxx

Re: Sterling in freefall
 

Usually its priced in already isn't it? Hence the recent falls. Lets hope so! Sometimes over done and the trend will reverse a little when the spending cuts are made clear.

Re: Sterling in freefall
 

Malthus said the same thing 200 years ago. Cr*p. Utter madness - although it does sell large numbers of books. But then so do books on astrology, spacemen building pyramids and flying saucers.

Never underestimate the ingenuity of the human race. There are at least 40 years of KNOWN resources of oil. And the rate motor vehicles are switching to other forms of power, and the way Nuclear is coming on oil is no problem.

No were you to have cited the militaristic aspirations of a few rogue states, and the love of war of a few non rogue states, i might have had more in agreement with your doomed scenario.

Oil and population are the least of the world's problems.

Re: Sterling in freefall
 

Oil wasn't discovered 200 years ago. It's not the supplies that are running out. It's the cheap oil that's running out. Everything is about to get a lot more expensive.

Re: Sterling in freefall
 

I am abit puzzled as what this has to do with the pound/euro xchange rate:confused:

Re: Sterling in freefall
 

It's because it affects the whole world economy. The world economy is set by the price of energy.

Re: Sterling in freefall
 

Whilst oil does have a bearing on the economy it does not explain the fall in the value of the pound to the euro as both the Uk and Eurozone are affected.
Surely on your basis you would expect the pound to strengthen as it has its own oil reserves.

This latest fall appears to be triggered by the perceived state of the Uk economy. However in my opinion this is due to transparency whereas many of the eurozone countries are less open in regard to the state of their nations finances.

Re: Sterling in freefall
 

I usually enjoy the news on a Sunday morning, all free and from all over the world. That was until I read that when a country is in so much debt that repayment becomes impossible, it has only one recourse, to devalue its currency.

Then I remembered Harold Wilson and his ‘The pound in your packet is still . . . .’

Well, Harold may have been right about the pound in your pocket in the UK, but I’m not in the UK. I change the pound in my pocket to buy myself a cup of coffee, and it’s getting dearer.

Re: Sterling in freefall
 

Where does 'Value' go anyway?
When it all comes down to it. Value is only a word. Like fairies, you have to believe in it for it to be real.
The only place our value is going is into a confidence hole. The only people making money out of it are the Bankers and the Insurers. The one feeds off the crises many of us have got into because of 'value' falls in our property, or other assets including money. And the other feeds off our fear of losing all that we have.
For these people swings in economy are actually a good thing.
Guess who's making money out of the fact we have to borrow to pay the tax debts we've got into because of the fall in value of the pound, due to the 'banking crisis' which our taxes bail out? (long sentence intentional).
The Bankers, who, having been handed out our tax money, and who are able to borrow at .5% in order to help the poor things out, are now lending us taxpayers our own money back at 21%!!:eek: Why? because we are a bad credit risk! And they are what? A good risk?:thumbdown:::frown:
There, that's my rant for the day. I feel better now.

Re: Sterling in freefall
 

They should be put in chains. Here's just one consequence:
http://www.theargus.co.uk/news/84436...nts_in_Sussex/

Re: Sterling in freefall
 

I suppose one plus point of the weak pound is that you still get plenty of EU tourists to the UK (and especially in London). The answer then is to invest in London hotels. I think...:unsure: