# Pound is on the way up people :o)



## Muddy (Jan 14, 2010)

Right now it's £1.2388 
Would appear the G20’s promise to cut deficits had an affect. The right one 
euro at 19-month low against the pound.

The weekend meeting of leaders in Toronto produced a pledge to halve deficits by 2013 and stabilize debt by 2016.

So lets hope it continues. It wasn't so long ago it was around 1.10 so this kind of increase now makes a big difference in my finances to be able to come over!
Not to spend more perhaps but have some spare cash under the mattress lol
Also some of you guys & gals will be getting a few more squids every month if it stays up..
The pound has been low for long enough, I want to see it back in the 1.40's :clap2:


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## jojo (Sep 20, 2007)

Muddy said:


> Right now it's £1.2388
> Would appear the G20’s promise to cut deficits had an affect. The right one
> euro at 19-month low against the pound.
> 
> ...


So do I, so do I!!! Wouldnt that be wonderful!!! 

Jo xxx


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## jojo (Sep 20, 2007)

........ do you think it will hit 1.40???????

Jo xxx


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## dunmovin (Dec 19, 2008)

jojo said:


> ........ do you think it will hit 1.40???????
> 
> Jo xxx


I certainly hope it does. We based a lot of calculations for our budget on that, then the rate went trough the floor


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## jojo (Sep 20, 2007)

dunmovin said:


> I certainly hope it does. We based a lot of calculations for our budget on that, then the rate went trough the floor


oh, so did we and its been a major struggle trying to keep things as we'd planned! Fingers and toes crossed !

Jo xxx


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## nigele2 (Dec 25, 2009)

jojo said:


> oh, so did we and its been a major struggle trying to keep things as we'd planned! Fingers and toes crossed !
> 
> Jo xxx


Jo must be a bit catch 22 for you surely? If the pound goes high then there will be no export driven recovery and your OH may have to pay more tax, work more years, and receive less pension 

It was reported that the recent rise was due to a suggestion from the BoE that interest rates would have to rise to keep inflation in check and that tomorrow many Euro banks have to pay back loans/debts.

If the GDP figures (which have been delayed for recalculation - conspiracy theories welcome  ) are poor and the Euro Banks do well it could all turn around. But hopefully not before next Friday when I'm due to change more dosh 

on the otherhand if the reverse happens then why not 1.60, 1.70


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## jojo (Sep 20, 2007)

nigele2 said:


> Jo must be a bit catch 22 for you surely? If the pound goes high then there will be no export driven recovery and your OH may have to pay more tax, work more years, and receive less pension



My whole life recently has been catch 22 lol! 

Jo xxx


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## Muddy (Jan 14, 2010)

Well there are a few stories about the eurozone which look negative. One of which I think the city is nervous that eurozone loans wont be paid back on 1st July 2010 Unlikely so I assume.
The £ will probably dip after the weekend a little for a short while, but apparently Spain Portugal and Greece are shut out of borrowing from the Central European Bank so are forced to beg from their local and central banks. How long can that continue.
Another old story I read some months back was about Spanish banks will have to revalue housing stock they have on their books by significant amounts! I've not looked into that for a while!
Searching about abit seem to show BoE will not be raising rates for some time yet either! I hope so.

Of curse we shouldn't want to hear too much negative news about Spain but better it comes out when things are bad for a lot of countries rather than it come out during its recovery!
IMHO it's all a cycle and we're in the middle of history that people will just look back on one day far into the future and hardly think of it as being important. But right now this cycle will give some more pain than others and open up avenues and possibilities that might have been thought closed shut. Spain will bounce back but not as soon as the UK so some advantage to be had for some perhaps like myself thinking of making the big move to a great country.

nigele2
Maybe change it this Fri just in case lol :eyebrows:


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## nigele2 (Dec 25, 2009)

Interesting summary Muddy.



Muddy said:


> Maybe change it this Fri just in case lol :eyebrows:


Sadly it means going to London and if I do a special that costs about £35 plus time so I'd have to be really convinced - and for all the swings and roundabouts you mention I am certainly not.

One group who will miss out badly here will be any one doing a forced return to the UK who has managed to get a few Euros back from their property. The end of their dream and a final kick up the jaksee to boot  

But as you say muddy one mans meat ......


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## Muddy (Jan 14, 2010)

nigele2 said:


> Sadly it means going to London and if I do a special that costs about £35 plus time so I'd have to be really convinced


Can't you can't get family to do it for you and save you a trip if that's possible! Or transfer bank to bank! Never done it but I would have thought it's possible!

I was chatting with someone about 3 months ago and I gave a guess of the £ being around 1.30 to 1.35 by end of this year, who knows. I think it will move down on Thu because the eurozone for the moment will make sure there is plenty of cash around for the banks so they can pay back the loans due on Thu, but once that passes and the profit takers make some wonga my guess it will start creeping up again. The city likes the austerity measures in the recent budget so it would appear confidence is high in the UK to have a faster recovery over the eurozone so that should mean investors buying pounds. 
But like the stock market it's all a gamble and nothing is written in stone.

Forced return sounds horrible. Hopefully people in that situation can keep most of what they have left and transfer it when the euro is high. Mind you maybe it is high now!!

Yep one persons bad luck can mean new possibilities for others :juggle:


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## nigele2 (Dec 25, 2009)

Muddy said:


> Or transfer bank to bank!


Muddy DO NOT USE BANKS unless you are a millionaire or are stuffed in Spain with no options.

If the rate is 123.5 I will get 1.22 with no commission


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## Muddy (Jan 14, 2010)

nigele2 said:


> Muddy DO NOT USE BANKS unless you are a millionaire or are stuffed in Spain with no options.
> 
> If the rate is 123.5 I will get 1.22 with no commission


Thanx for the advice. That's another thing on my ToDo list I haven't looked into as yet is moving money from sale of my place!
Cheers..


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## thrax (Nov 13, 2008)

Everything I have read in the last couple of days points to an almost inevitable increase in interest rates in the UK. Should that happen then we will probably see the euro at around 1.35. My financial friends who live in UK/France?Spain have been telling me for months that it will be around 1.35 by the end of 2010.


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## jojo (Sep 20, 2007)

thrax said:


> Everything I have read in the last couple of days points to an almost inevitable increase in interest rates in the UK. Should that happen then we will probably see the euro at around 1.35. My financial friends who live in UK/France?Spain have been telling me for months that it will be around 1.35 by the end of 2010.




The end of the year aint soon enough for me !!!!? and its dropping a bit this morning 

Jo xxx


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## thrax (Nov 13, 2008)

Well ok maybe by September if that helps... It will always drop a bit after a rise because of people speculating and selling off . Interesting to see how it goes during the day. Tell you what JoJo, lets you and I have a bet on it. If it goes up and you are happy then you win. If it goes down you have to buy me a drink in whatever town I choose. There you go, can't say fairer than that!!!!


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## jojo (Sep 20, 2007)

thrax said:


> Well ok maybe by September if that helps... It will always drop a bit after a rise because of people speculating and selling off . Interesting to see how it goes during the day. Tell you what JoJo, lets you and I have a bet on it. If it goes up and you are happy then you win. If it goes down you have to buy me a drink in whatever town I choose. There you go, can't say fairer than that!!!!


So you're the booby prize then!!??? Its a deal!!!!!

Jo xxx


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## thrax (Nov 13, 2008)

Awwww shucks (said the budgie looking at his empty seed tray) I aint never been a booby prize before


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## jojo (Sep 20, 2007)

Oh heck and its really dropping now 

Jo xxx


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## thrax (Nov 13, 2008)

Drinks are on you !!!!!!


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## Joppa (Sep 7, 2009)

jojo said:


> Oh heck and its really dropping now
> 
> Jo xxx


Euro is stronger as the banks have needed less borrowing from European Central Bank than expected, easing the pressure on the currency. There is a lot of short covering on euro and profit-taking after a big drop recently, mainly against $, CHF and yen, and to a lesser degree against sterling. There are still potentially bad news for euro in the pipeline, sych as Merkel's political position with forthcoming German presidential election, views of German Bundesbank on current sovereign debt crisis and dire state of European periphery economies in Central and Eastern Europe.
As for sterling, the money market seems happy, for the time being, about what the UK government is doing with reducing budget deficit and austerity programmes outlined in the emergency budget. But UK is certainly not out of the woods yet and if there are clear signs of dropping demands and higher unemployment, falling house prices etc, the pound can still follow euro into downward spiral, though will probably remain around current levels against the single currency. I think 1.35 by the year end is way optimistic - more like 1.25 - 1.28 tops, and can drop to 1.15 - 1.18 quite easily.


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## geez (Apr 4, 2010)

Muddy said:


> The £ will probably dip after the weekend a little for a short while, but apparently Spain Portugal and Greece are shut out of borrowing from the Central European Bank so are forced to beg from their local and central banks. How long can that continue.:



Hadn't read that about the ECB. Isn't that just the banks at the moment? Or the regions? Last week Catalonia had a failed debt raise which looks like to translate into another round of budget cuts.

I feel so sorry for poor old Spain getting lumped in with the rest. Total debt/GDP here is no more dramatic than they are elsewhere in the Union. The current account ain't pretty, but is it anywhere?


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