Reply to: GBP/EUR exchange rate

[The Lone Gunman]

WTF? You've transferred 45000 euros to GBP and now you want the GBP to collapse?

Yes. I earned it at 1.6 so I made a decent wedge on that lot.
I am now going back to work in euroland so I want my 75 euro per hour to be worth lots of pounds.

Pondlife. I am going to South West Germany. I will be using a local airport though I could use Munich or Stuttgart. Both are within striking distance.

[expat]

Yeah, perhaps we should have a expat CUK do some time

expat (tm)

[HairyArsedBloke]

Sterling has followed the greenback down the pan, but not as fast. Neat trick that, it made the pound look stronger when in truth it was weakening. The result has caused massive inflation in food and energy imports.

The UK needs serious cuts in public spending, tax cuts, and an increase in interest rates. None of which is going to happen. In fact, the opposite is more likely to be the result of ‘a period of consultation and study’.

However, fixing the problems of past maladministration will cause problems of it own by deterring the investment in the economy that it desperately needs.
In short, we’re fracked.

[moorfield]

I hope the pound collapses as I have just scored a job in Germany.

I also transfered 45000 euros to GB when it dropped to 1.2.

WTF? You've transferred 45000 euros to GBP and now you want the GBP to collapse?

[ThomasSoerensen]

Which city? If you don't mind volunteering the info.

Yeah, perhaps we should have a expat CUK do some time

[Pondlife]

I hope the pound collapses as I have just scored a job in Germany.
I also transfered 45000 euros to GB when it dropped to 1.2.

Which city? If you don't mind volunteering the info.

[The Lone Gunman]

I hope the pound collapses as I have just scored a job in Germany.

I also transfered 45000 euros to GB when it dropped to 1.2.

[Bagpuss]

You would think, BUT

In the UK the economy is linked to the housing market. Raising rates will destroy the market further, causing a total collapse in the UK.

Therefore the BoE would rather have a sustained period of rampant inflation and protect the housing market.

Rates will remain constant or even fall.

Lending rates to borrowers however will continue to rise, regardless.

Therefore I would say Sterling is heading towards parity with the Euro.

That's a possible move (under pressure from Gordo) but very dangerous (and stupid)

[DimPrawn]

I'd guess inflation will be worse in the UK than in the Eurozone. The pressure to raise interest rates will be higher. Higher interest rates = more demand for £s. I'd expect the pound to buy more euros.

You would think, BUT

In the UK the economy is linked to the housing market. Raising rates will destroy the market further, causing a total collapse in the UK.

Therefore the BoE would rather have a sustained period of rampant inflation and protect the housing market.

Rates will remain constant or even fall.

Lending rates to borrowers however will continue to rise, regardless.

Therefore I would say Sterling is heading towards parity with the Euro.

[Bagpuss]

I'd guess inflation will be worse in the UK than in the Eurozone. The pressure to raise interest rates will be higher. Higher interest rates = more demand for £s. I'd expect the pound to buy more euros.

[Pondlife]

Since roughly the beginning of the year;

Average (153 days): 1.28844
High: 1.35200
Low: 1.23460

Current: 1.2714

So for those of us who invoice in Euro, it's not as good as it has been but it could be worse.

[Moscow Mule]

I was thinking parity, but I'm liking 1.1578. Is it the spread mid-point?

Made it up. igindex only do far quarter on FX - they have it at 1.266 (7898.0)

[ace00]

1 GBP = 1.1578 EUR

I was thinking parity, but I'm liking 1.1578. Is it the spread mid-point?

[Moscow Mule]

Brain drain as anyone with sense goes and works for a currency that's actually worth something.

Doomed.

It's almost tempting to go back to Moscow for 6 months.

Almost...

[DimPrawn]

Brain drain as anyone with sense goes and works for a currency that's actually worth something.

Doomed.