Thread: Pound fall against the Euro

Found this article on the BBC website today:

Pound extends losses against euro

The pound has fallen sharply against the euro and the dollar after the head of the Bank of England said a weak currency was "helpful" to the economy.

The pound fell to 1.0947 euros, its lowest since early April, and dropped by about a cent to $1.6172.

Bank governor Mervyn King said in a newspaper interview that a fall in the exchange rate would help to balance the UK economy by giving exports a lift.

Analysts said the pound was likely to fall further against the euro.

The pound has weakened in recent days on fears about the high level of UK debt.

However, the pound is still well above the levels hit early in the year when it traded below $1.50 against the dollar.

'Downward spiral'

Mark O'Sullivan, director of dealing at Currencies Direct said Mr King's comments indicated that the central bank was in favour of a weak pound.

"If we continue to see the pound being talked down from the top then the downward spiral towards parity with the euro will continue apace," he said.

Mr King also told the Journal newspaper in Newcastle that UK economic growth was beginning to pick up, but said people should not get carried away.

I can see the benefit for exports but on the other hand it's a pain when you are transferring money from the UK to Spain, and if the downward trend continues it will have a further impact the Brit. tourism trade within Spain.

Isn't it about time the UK joined Europe properly and adopted the euro. It would make life so much easier. No bank charges for changing money! No worrying about wether you've got pounds to go back to UK with! No exchange rates! No exchange companies!
If you search "england euro coin" the english coins are all ready designed. So how long do england intend to put it off for. Now is the right time to join. In my opinion that is!

Mmmm I'm not convinced......I think the conversion rate is way too low right now that said if a better rate could be procured (say around 1:1,35 to 1:1,45) I may be persuaded it's a good idea.

I know it has gone way past recovery now. Its on the tv right now about the euro being so strong and pound weak. So not much chance of a recovery to 1.45.
In my personal circumstances if the pound was stronger I would sell more properties.
My long term vision is to see england with the euro. I must admit i was pleased to see last time I was back in the UK that the like of big shops like H&M , toshop etc will take euro notes. Cool hey!

Originally Posted by ELJEFE

I know it has gone way past recovery now. Its on the tv right now about the euro being so strong and pound weak. So not much chance of a recovery to 1.45.
In my personal circumstances if the pound was stronger I would sell more properties.
My long term vision is to see england with the euro. I must admit i was pleased to see last time I was back in the UK that the like of big shops like H&M , toshop etc will take euro notes. Cool hey!

I guess if the eroding had occurred in 5 years time we wouldn't mind as by then I envisage our assets will mostly be euro based however currently we have too much dependency on sterling

Yeah that's cool about H&M, I hadn't realised they accepted euros in the UK

Originally Posted by ELJEFE

Isn't it about time the UK joined Europe properly and adopted the euro. It would make life so much easier. No bank charges for changing money! No worrying about wether you've got pounds to go back to UK with! No exchange rates! No exchange companies!
If you search "england euro coin" the english coins are all ready designed. So how long do england intend to put it off for. Now is the right time to join. In my opinion that is!

To low to join at the moment , every time clown Brown opens his mouth it drops ..

I do worry that it will go lower yet unless we can find a new Guy Fawkes who is better at hiding though

It has always struck me as ludicrous that a 'weak' pound helps exports.Yes it probably does if you are selling something like insurance,financial services etc; There are very few companies that manufacture any type of equipment that does not incorporate parts sourced from overseas, therefore increasing base costs. I have an aquaintance that manufactures access equipment, 40% of the parts are sourced from abroad driving up the overall cost by 12%, which can't be recouped,the machine still sells for the same price. The only people who benefit are the purchasers who are now paying 30% less! and still selling to the end user at the same price.
When the euro was introduced , ! pound = 1,74c. When EU changed to euro it was 1 pound = 1.62e.
The reason the U.K. has to contribute such large amount is because they are not a full member. ( not adopted euro )
Re: paying in euros in the U.K. you have always been able to do that, it's just that their is no requirement to give you the change in euros and the rate of exchange can be horrendous!

Today 04/03/10 One Pound Sterling buys you One euro and ten cent's 1 to 1,104 €
The lowest was oct 13th 2009, 1 pound buys 1,06 euro.

Well which way is it going to go now?

Originally Posted by ELJEFE

Today 04/03/10 One Pound Sterling buys you One euro and ten cent's 1 to 1,104 €
The lowest was oct 13th 2009, 1 pound buys 1,06 euro.

Well which way is it going to go now?

Toss a coin LOL

Jo xxx