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£ verses Euro

Community Veteran
Posts: 7,917
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Registered: 02-08-2007

£ verses Euro

There is much criticism about the Euro these days but is the £ not in a much worse state ?
At one time you could get 1 Euro for 68 pence, now it's going to cost you nearly 90p.
37 REPLIES
itsme
Grafter
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Registered: 07-04-2007

Re: £ verses Euro

Side effect of Quantitative easing
nadger
Rising Star
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Registered: 13-04-2007

Re: £ verses Euro

I certainly recall the Euro at 63p and, as a regular visitor to France, it's frightening to see how much the Pound has dropped in relative value.
Things we regarded as cheap in a Calais supermarket now cost more than in UK  Cry

Community Veteran
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Registered: 24-09-2008

Re: £ verses Euro

Certainly compared with a couple of other currencies: over a 10 year period the £ is heading down
£ vs Aus$  http://www.xe.com/currencycharts/?from=GBP&to=AUD&view=10Y
£ vs Norwegain Kroner  http://www.xe.com/currencycharts/?from=GBP&to=NOK&view=10Y
Community Veteran
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Registered: 21-03-2011

Re: £ verses Euro

Interesting choice.  The Ozzzie $ has risen of late because it is a major exporter of minerals/coal etc to China; while the Norwegian Kroner has risen because of its oil & gas with a small population.  So comparing sterling with those is bound to show a marked difference.
The UK has peaked for Oil/Gas production, imports its coal has an increasing population and is borrowing loads of money whilst printing lots of unfunded pounds (Quantative Easing) because of massive government borrowing over the past few years. To reduce the impact of government borrowing, UK interest rates are at an all time forced low The money holding countries are unlikely to want to store their money in Sterling so we've seen effective devaluation. As a consequence we see a massive increase in the cost of living. Fuel/food etc).
If we'd adopted the Euro we'd have been part of a larger geographic money region and more insulated from currency differences. I'm no support of the Euro though, because of countries like Greece who cheated on the financial rules.
Now Zen, but a +Net residue.
Community Veteran
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Registered: 12-08-2007

Re: £ verses Euro

The £ has been good compared with the $ for visitors to the US.  I've just bought another $1000 and got $1.645 to the £ Smiley
Community Veteran
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Registered: 24-09-2008

Re: £ verses Euro

Prophet of doom:- the final report of project armageddon .....................@Artmo maybe better buy more $ Roll eyes Roll eyes
http://www.tullettprebon.com/Documents/strategyinsights/Tim_Morgan_Report_007.pdf
A very disturbing read concerning the future of the UK economy. Really lays into GB.
Page 3 (A very British Mess)
..............Britain’s fiscal and economic problems result from grotesque mishandling of the economy under the 1997-
2010 Labour administration. Gordon Brown’s reform of the financial regulatory system, and his insistence
that the Bank of England determine monetary policy on the basis of retail inflation alone, resulted in a reckless
escalation in mortgage lending.

(But it cannot be that bad, when did you last meet an economists with the ability to 'forecast').
@shutter  thanks, corrected, the post 'escaped' early  Embarrassed Embarrassed
Community Veteran
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Registered: 06-11-2007

Re: £ verses Euro

Quote from: journeys

(But it cannot be that bad, when did yo last meet an economists with the ability to 'forcast').

Or one who can spell it properly !  Grin
Community Veteran
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Registered: 21-03-2011

Re: £ verses Euro

Ahhh but TullettPrebon are a Moneybroking company. Regarded as the white socks brigade. Their profits and bonuses depend on market instability. Tim Morgan may have written the report bemoaning the situation, but it certainly would have helped their profit margin. To give them their due they work hard for their money with commission rate around 200th of a percent on foreign exchange deals.
Now Zen, but a +Net residue.
Community Veteran
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Registered: 23-09-2010

Re: £ verses Euro

The £ is currently stuck between a rock and a hard place with the Euro.
If the £ shows any sign of rapidly rising in value against the Euro it only indicates the Euro is failing which in turn means massive support from the £ to stop it failing.
At the moment the Euro is nothing more than a pair of concrete boots attached to the stocking feet of Britannia.
Community Veteran
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Registered: 12-08-2007

Re: £ verses Euro

Quote from: journeys
Prophet of doom:- the final report of project armageddon .....................@Artmo maybe better buy more $ Roll eyes Roll eyes
A very disturbing read concerning the future of the UK economy. Really lays into GB.
Page 3 (A very British Mess)
..............Britain’s fiscal and economic problems result from grotesque mishandling of the economy under the 1997-
2010 Labour administration. Gordon Brown’s reform of the financial regulatory system, and his insistence
that the Bank of England determine monetary policy on the basis of retail inflation alone, resulted in a reckless
escalation in mortgage lending.


Read the extract you mentioned and it is indeed worrying.  No wonder he's gone to ground.  An economy based on over borrowing is doomed to collapse.  Micawber's words couldn't be more appropriate.
Community Veteran
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Registered: 10-08-2007

Re: £ verses Euro

Quote from: artmo
The £ has been good compared with the $ for visitors to the US.  I've just bought another $1000 and got $1.645 to the £ Smiley

I believe if you could have waited you would have got a better deal.
Community Veteran
Posts: 18,545
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Registered: 12-08-2007

Re: £ verses Euro

Is that reliable inside info or just a hunch?  I will need some more next week.
Community Veteran
Posts: 3,291
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Registered: 10-08-2007

Re: £ verses Euro

I couldn't possibly have inside information.
matt_2k34
Grafter
Posts: 1,300
Registered: 09-07-2007

Re: £ verses Euro

People who think that we should drop the £ are deluded.
It may have issues, but as itsme states - thats just a side effect.
Pumping money into the euro does not help.
BUT Having our own currency gives us plenty of control over inflation/interest rates/quantitive easing measures...
Unlike euro countries who are bound by agreements, and beaurocracy...
Regards