jackytoo

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."

Bri and Katee

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..

steviedeluxe

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

HBG

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

cricketman

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!?

Scribble

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

ricardoylucia

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.

jackytoo

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

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

HBG

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.

jackytoo

graph for the last 12 hours

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

Bri and Katee

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.

jackytoo

The 10 year graph is interesting, the rate hit 1.73 in 2001 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%

olivia

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

Scribble

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.

frigilianafreddy

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

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. 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.

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