# whats going on with the pound?



## jojo (Sep 20, 2007)

I see the pound has taken a bit of a tumble against the euro, 1.16, it was 1.23 onyl a couple of weeks ago. I havent been watching it very closely cos of work commitments. Has something happened in the world of high finance?

Jo xxx


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## xicoalc (Apr 20, 2010)

jojo said:


> I see the pound has taken a bit of a tumble against the euro, 1.16, it was 1.23 onyl a couple of weeks ago. I havent been watching it very closely cos of work commitments. Has something happened in the world of high finance?
> 
> Jo xxx


Sorry - my fault Jo!

EVERY BLOODY TIME I need to do a conversion it drops. I was wathing it in the 1.20+ stage and feeling happy, decided to bring some pennies over and it plummeted. Always the same with me! 

Next time i thinking of it I will warn you so you can get in there before the rate drops!!!


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## jojo (Sep 20, 2007)

steve_in_spain said:


> Sorry - my fault Jo!
> 
> EVERY BLOODY TIME I need to do a conversion it drops. I was wathing it in the 1.20+ stage and feeling happy, decided to bring some pennies over and it plummeted. Always the same with me!
> 
> Next time i thinking of it I will warn you so you can get in there before the rate drops!!!


Sorry, that was such a funny reply :rofl::rofl::rofl::rofl:


Jo xxx


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## Joppa (Sep 7, 2009)

jojo said:


> I see the pound has taken a bit of a tumble against the euro, 1.16, it was 1.23 onyl a couple of weeks ago. I havent been watching it very closely cos of work commitments. Has something happened in the world of high finance?


It's not so much the weakness of the pound as the general strengthening of euro against other currencies - it has risen even more strongly against US$, for example. Eurozone countries have had a successful sale of government bonds, and even weaker economies like Greece, Ireland, Portugal and Spain have seen their sale oversubscribed, thus easing the sovereign debt fears. Negatives for sterling include weaker house prices, drop in mortgage advances, record debt for August and just today a benign outlook for UK inflation and possibility of further monetary easing (pumping more money into the economy) perhaps early next year, according to the latest minutes of BOE monetary committee. The fall of sterling has been exaggerated as it has gone through key support levels, attracting further sell.
Where sterling is heading is anyone's guess, but the market is expecting some bad news from the Eurozone, perhaps giving support to the pound. Over the medium term, the market wants to see the details of government cuts to be announced next month and the possible effect on UK growth prospect before taking a definite view on sterling.


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## gus-lopez (Jan 4, 2010)

Adding to Joppas there was also the fact that they borrowed a record amount in august , even more than last august. Then you've got the increase in vat to come in january . Doesn't look good.


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## jojo (Sep 20, 2007)

.......er is it the euro strengthening or the pound weakening, or both?? 1.12 and seems to be dropping 

Jo xxx


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## Joppa (Sep 7, 2009)

jojo said:


> .......er is it the euro strengthening or the pound weakening, or both?? 1.12 and seems to be dropping


Both! Euro is stronger because of continuing problems in the US with further quantitative easing (QE) now a dead cert, while Eurozone is talking about tightening money supply (i.e. interest rate rise) in response to growths. Sterling is hit with further bad news this morning about drop in retail sales, and yesterday's BOE monetary policy committee minutes indicating growing demand for QE, possibly in the next few months, to kick-start the economy (yet again). I think this morning's news increased the odds of QE as early as next month.


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## mrypg9 (Apr 26, 2008)

Interesting article in The Economist about all this..
Personally, I blame China. Overvalued yen....


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## Joppa (Sep 7, 2009)

The pound is highest in a week, up to 1.1375, after the third-quarter growth came in twice as much as forecast, up 0.8% vs predicted 0.4%, pushing back the imminent prospect of further QE for now.


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## mrypg9 (Apr 26, 2008)

Weak £ is essential to the Governmrent's strategy, as are low interest rates.
But the meeting in SEoul yesterday issued a statement pledging an end to currency wars....
In a previous post I noticed an error...I should have said China's currency is undervalued not over valued...


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## Calas felices (Nov 29, 2007)

A lot of gsmes being played at the moment. get someon (well placed) to predict that the rate of growth will be low - even though Government sources already know what the figure is - talk the pound down and then surprise, surprise when the news is good, make money from the rise which is now over 1.14. I don't mind as I managed to get on the bandwagon.


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## MaidenScotland (Jun 6, 2009)

What does it matter?

I never check the rate.. there is nothing I can do about it


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## jojo (Sep 20, 2007)

MaidenScotland said:


> What does it matter?
> 
> I never check the rate.. there is nothing I can do about it


My OH gets paid in sterling and he gives me a monthly allowance in sterling. When we arrived here it was 1.38, last christmas it went down to parity! So it matters

Jo xxx


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## lynn (Sep 25, 2008)

MaidenScotland said:


> What does it matter?
> 
> I never check the rate.. there is nothing I can do about it


Many of us are like Jo and have sterling income, so the rate does really matter. There might not be 'anything we can do about it', but we can *plan carefully *when and how we transfer money over to Euro and so ensure that we get maximum benefit. So, I think gaining knowledge of what the money markets are doing globally is responsible and beneficial to all who live abroad.


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## 90199 (Mar 21, 2010)

The fluctuations can be beaten. I have an account that allows me instant daily transfer of small amounts, from U.K. to here. When the pound is up say 1.20 and above, I move money every day and deposit in my Spanish account. When the pound is down I draw from the Spanish account.

I pay no commission/bank charges, the rate of exchange is excellent, and it can all be effected within walking distance from where I live,

Hepa


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## lynn (Sep 25, 2008)

Hepa said:


> The fluctuations can be beaten. I have an account that allows me instant daily transfer of small amounts, from U.K. to here. When the pound is up say 1.20 and above, I move money every day and deposit in my Spanish account. When the pound is down I draw from the Spanish account.
> 
> I pay no commission/bank charges, the rate of exchange is excellent, and it can all be effected within walking distance from where I live,
> 
> Hepa


:clap2::clap2:


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## mrypg9 (Apr 26, 2008)

Growth at twice the predicted rate....and for , July, August, September.
Since any fiscal or other initiatives by Government take a considerable time to filter through into the real economy can we now assume that Gordon -or at least Alistair -wasn't such a moron after all?
And since it will take several months for the effects of the cuts to be felt, isn't it a little premature to conclude there will be no double-dip recession, as some pundits are now proclaiming?


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## 90199 (Mar 21, 2010)

I have been advised that the pound will probably be about 1.20 by the end of the year.

Regarding the last U.K. Government, presume what you wish. History will decide,

Hepa


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## jojo (Sep 20, 2007)

Hepa said:


> I have been advised that the pound will probably be about 1.20 by the end of the year.
> 
> 
> 
> Hepa


It was that last week! I just hope this is the sign of change!

Jo xxx


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## Stravinsky (Aug 12, 2007)

Hepa said:


> The fluctuations can be beaten. I have an account that allows me instant daily transfer of small amounts, from U.K. to here. When the pound is up say 1.20 and above, I move money every day and deposit in my Spanish account. When the pound is down I draw from the Spanish account.
> 
> I pay no commission/bank charges, the rate of exchange is excellent, and it can all be effected within walking distance from where I live,
> 
> Hepa



The people at Crown Currencies were always amazed at the rates they go from them. Regrettably many of them have now lost tens of thousands of pounds after Crown went bust

I used to have an account with Sunpay who did what you describe, but they ceased trading as well - Who do you use?


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## 90199 (Mar 21, 2010)

jojo said:


> It was that last week! I just hope this is the sign of change!
> 
> Jo xxx


Not so Jo Jo, Look at the 3month chart,

GBP/EUR Share Price Chart | GBPEUR=X | GB0008283987 | Yahoo! Finance UK

Hepa


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## jojo (Sep 20, 2007)

Hepa said:


> Not so Jo Jo, Look at the 3month chart,
> 
> GBP/EUR Share Price Chart | GBPEUR=X | GB0008283987 | Yahoo! Finance UK
> 
> Hepa


Ok a few weeks ago! 

Jo xxx


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## Sandy Tall (Oct 27, 2010)

mrypg9 said:


> Weak £ is essential to the Governmrent's strategy, as are low interest rates.
> But the meeting in SEoul yesterday issued a statement pledging an end to currency wars....
> In a previous post I noticed an error...I should have said China's currency is undervalued not over valued...


Ha...That sounds fun:clap2:


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