Pound weaker against Euro?

[oxtailsoup]

The value of the pound has plunged against the euro since January and now sits at around 1.26/1.27 down from 1.50 a year ago.

Great if you are paid in Euros of course.

Can anyone explain why the pound has been getting weaker and weaker recently? I need to purchase some euros (about 50k) and I don't know whether the pound will get stronger in the short term or not... it keeps going downwards!.

I don't really understand what the market is waiting for to make the pound stronger again.. such as interest rate cut etc?

Buy now or wait a few weeks?

[Paddy]

The value of the pound has plunged against the euro since January and now sits at around 1.26/1.27 down from 1.50 a year ago.

Great if you are paid in Euros of course.

Can anyone explain why the pound has been getting weaker and weaker recently? I need to purchase some euros (about 50k) and I don't know whether the pound will get stronger in the short term or not... it keeps going downwards!.

I don't really understand what the market is waiting for to make the pound stronger again.. such as interest rate cut etc?

Buy now or wait a few weeks?

The pound is weak against most currencies except the US dollar.

The UK has a sh-1t economy with a sh-1t government.

[BlasterBates]

I would change some regularly over a period. That way you can at least guarantee that you weren't caught out by a sharp short dip. The pound will probably remain weak for some time.

[ChimpMaster]

Buy Euros now if you're looking to exchange - the £ will only get weaker against the Euro. The UK interest rate is unlikely to go up much and probably more likely to go down, whereas the ECB has often reiterated that Eurozone rates are not going down.

Furthermore, the UK economy is in a right hole and everyone on this planet apart from Brown and Darling can see that. 30% of UK growth is dependent on the financial services sector and this is the one sector that is well and truly screwed due to the over-leveraging crisis. The average debt ratio in the UK is 175% which is even higher than the US. Furthermore, house prices are falling and will compound the negative effects on our consumer driven economy.

That's why foreigners don't want to invest in UK Plc and hence they don't hold £ assets and the £ gets weaker.

This will help our exporters and manufacturers (do we have any left?) but the rest of us are pretty much shafted.

[oxtailsoup]

Thanks Tz.

So lower interest rates will probably mean a weaker pound? Sh1t I thought it was the other way around. Not a lot of point waiting for higher interest rates is there?

[threaded]

The pound has been overvalued since the New Lie got into power, as them that know, knew, they'd fsck up the economy eventually, they always do.

Essentially if you use a salaried beauracracy to manage an economy the weight of the civil servants increases and the economy stagnates due to interference and the destruction of incentives, until you reach a tipping point and the whole thing collapses like a tower of cards.

[oxtailsoup]

Why has the word s h 1 t turned into tulip?

[threaded]

Why has the word s h 1 t turned into tulip?

You don't wanna go there...

[tim123]

The value of the pound has plunged against the euro since January and now sits at around 1.26/1.27 down from 1.50 a year ago.

Great if you are paid in Euros of course.

Can anyone explain why the pound has been getting weaker and weaker recently? I need to purchase some euros (about 50k) and I don't know whether the pound will get stronger in the short term or not... it keeps going downwards!.

Because the BoE have publically stated that Interest rate expectations in the UK are downwards (and have actually cut them) and the ECB have publically stated that they see no need to reduce interest rates in the foreseeable future.

The pound will continue to be low until the ECB accept, the IMHO inevitable, that Euro intereste rates will have to be lowered to avoid a recession.

tim

[ferret]

Why has the word s h 1 t turned into tulip?

The language on this board was appalling and the site admins suggested that it made contractors look like a bunch of chavs. There is a rude word filter on the site now that changes some swear words. It is quite amusing in some ways, annoying in others. As one poster said a few months ago, his partner could not understand why he was laughing so much as they drove past the Golden Tulip Hotel. You even start typing tulip and noddy etc after a while as well...