£ & €

[doodab]

I see the euro is gaining again. Is the post election feelgood factor wearing off as people realise that even superdave can't save them? Or perhaps the markets think the coalition won't make it through the winter (of discontent?)

Parity by christmas would make my christmas shopping a lot easier.

[suityou01]

I see the euro is gaining again. Is the post election feelgood factor wearing off as people realise that even superdave can't save them? Or perhaps the markets think the coalition won't make it through the winter (of discontent?)

Parity by christmas would make my christmas shopping a lot easier.

Link???

[HairyArsedBloke]

This is what you need to look at.

It's not a GBP v EUR story; it's USD v rest of the world. It's doing less worse against some than others and that changes all the time.

[Jog On]

This is what you need to look at.

It's not a GBP v EUR story; it's USD v rest of the world. It's doing less worse against some than others and that changes all the time.

WHS - they're both gaining vs USD. Intraday news releases say all sorts of contradictory things that don't really have much longer term effect on trends.

Here's an interesting story:

Five months. That's all the time it took for financial markets to go from predicting the collapse of European monetary union to falling in love all over again with the euro, which has soared nearly 5 percent against the dollar in the past two weeks.

Link

What a fickle bunch us dirty spekulants are

[scooterscot]

I've noticed my monthly invoice increase by almost ££££'s thanks to the gains in the Euro recently.

Countries like China and others are deliberately devaluing their currency. I wonder if this makes investors nervous...

How does the Euro do the same if it is made of several countries? I think for this reason it is attractive to investors all of sudden.

But what do i know...

[suityou01]

I've noticed my monthly invoice increase by almost ££££'s thanks to the gains in the Euro recently.

Countries like China and others are deliberately devaluing their currency. I wonder if this makes investors nervous...

How does the Euro do the same if it is made of several countries? I think for this reason it is attractive to investors all of sudden.

But what do i know...

See HAB's post.

HTH

[scooterscot]

See HAB's post.

HTH

I have seen it. It does not mean that's the only cause. The US is not as important as it once was.

[doodab]

This is what you need to look at.

It's not a GBP v EUR story; it's USD v rest of the world. It's doing less worse against some than others and that changes all the time.

That's part of the bigger picture, but the devil is in the details. The reason that the dollar is doing better against sterling than it is against the euro is going to be down to differences between the UK and the eurozone, which is what I am interested in.

What is puzzling me is that the euro has gained on the pound even today, despite bad news on the Irish deficit and Moody's downgrading spain. I can only guess that the recent trend for weakening ones currency is pushing the euro up because the ECB aren't joining in. Are the BoE actively pursuing a weaker pound?

[Jog On]

I think there's just more enthusiasm for the Euro than there is the pound.

A lot of traders are long EUR/USD which is going up while GBP/USD is going down (today).

There is a quite bullish sentiment on the Euro at the moment so it's strengthening across the board - even against the Yen.

I can't see BOE intervening to weaken the pound, even if that would be good for exports (which is why nations that export a lot like to have weak currencies to help their industry).

EUR/GBP is looking like it's just reversed it's trend from down to up.

[scooterscot]

I can only guess that the recent trend for weakening ones currency is pushing the euro up because the ECB aren't joining in. Are the BoE actively pursuing a weaker pound?

This is exactly the point I was attempting to make, albeit poorly. With debt the picture is clear, you either have it or don't. Start tempering with the value of your currency increases uncertainty at least with the EU that process is not so straight forward.