Speaking to our village post master (yes we still have one) this week, he informed me that it was the worst exchange rate ever for the Euro.
At one time £17.00 would only get you 20 euros.
The have got a poster up saying that if you buy £500 worth of foreign currency that you will get an extra 1.2%.
I cant make my mind up to buy or wait and see if the rate gets better

As a guide the Pound/Euro exchange rate will not improve until the UK increases interest rates

I know Im a little slow, but I dont quite understand why the Euro has stood up so well to all the worldwide currency fluctuations.

In the last year we have gone from !:46 down to around 1:23 to the euro, yet we are still at more or less 50p to the US dollar.

Were the European banks not caught by the sub -prime thing?

Im quite prepared to believe anything of the Blair/Brown conspiricy/incompetance theories, but I cant really buy into the idea that they are waiting for us to fall to parity, before joining the Euro. That would be an even greater devaluation than under Callaghan!...(another incompetant Labour government.....my God....and they criticised Maggie Thatcher?????....say what you like....this wouldn't've happened under Thatcher!!!!).

So my question to the financial brains.......will sterling recover against the euro?.....and yes I recognise this could be a piece of string question!

Bruce Wallis wrote:I know Im a little slow,

So my question to the financial brains.......will sterling recover against the euro?.....and yes I recognise this could be a piece of string question!

er, I already answered the question Bruce Foreign Investors are wary of your low UK interest rates, and until the BOE decide to raise them again you will have a bad Stg/Euro exchange rate. This should be straight forward enough for even you to understand. :roll

Hi Sam,
Think you may have to explain your theory in more detail if we are to understand your logic. ECB interest rates are 4% and Bank of England are 5%. Why do you think that low UK rates alone are causing the adverse exchange rate?

The sign of a good communicator Sam, is to get your message across, not just impress people what a smart-arse you are.

If you actually read my post, you would see that I was asking the underlying questions, and asking why the Euro wasnt suffering along with Sterling and the Dollar.

I find this generally accurate - they send me a weekly email and their forecasts are usually sound.

http://www.moneycorp.com/headline_mail/EUR_MC.html

Thanks fmm....that was helpful....and moderately encouraging....in the medium to long term.

Bruce Wallis wrote:The sign of a good communicator Sam, is to get your message across, not just impress people what a smart-arse you are.
.

Bruce, Sam is a good friend of mine and not a 'smart arse' at all. In fact a very nice, kind, friendly fella.

I think it will come down to the old fashioned concept of what we owe to the rest of the world ie we run a balance of payments defecit. Same as America really maybe thats why our currencies are interlocked recently. At some time you have to pay the piper so the interest rates may have to rise to compensate and not fall. Basically we do not make enough stuff so import more than we export and that can only go on for so long. Also due to the prudent spending of Gordo we are only 36 billion in debt as of last week and rising by the day. So this is why I think the pound will be hammered against most currencies in the near future.

Mind you I could be biased as I earn euros

Gary

There are some fairly strong economies in the Euro and despite Brown trying to convince the UK that their economic problems are world wide, I don't think they are to such an extent as the UK and US.
It will be along time before the exchange rate goes back up to around the 1.40 mark.