# Pound is UP!



## Joppa (Sep 7, 2009)

The pound has breached 1.20 euro level for the first time since September, as debt crisis in Portugal and other eurozone peripheral countries is again under the spotlight. Currency traders say they are bullish about sterling vs euro this year, predicting a rise to a longterm average of around 80p or 1.25 euro.


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## mazlester (Oct 30, 2010)

Joppa said:


> The pound has breached 1.20 euro level for the first time since September, as debt crisis in Portugal and other eurozone peripheral countries is again under the spotlight. Currency traders say they are bullish about sterling vs euro this year, predicting a rise to a longterm average of around 80p or 1.25 euro.


Fair FX exchange rate is currently 1.18Euros to the pound! Better rate than the Post Office.

Maria


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## 90199 (Mar 21, 2010)

Joppa said:


> The pound has breached 1.20 euro level for the first time since September, as debt crisis in Portugal and other eurozone peripheral countries is again under the spotlight. Currency traders say they are bullish about sterling vs euro this year, predicting a rise to a longterm average of around 80p or 1.25 euro.



Does that mean we can afford some jam with the bread?

Hepa


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## shoemanpete (Jan 4, 2010)

I transfer monies from my uk bank to my spanish bank accounts and today I got 1.15 to £1. Looking forward to it going to 1.20


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## owdoggy (Jul 23, 2008)

Hepa said:


> Does that mean we can afford some jam with the bread?
> 
> Hepa


Steady!



Doggy


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## littleredrooster (Aug 3, 2008)

Hepa said:


> Does that mean we can afford some jam with the bread?
> 
> Hepa


You can have jam, or you can have margarine, but you definitely can NOT have both !


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## mrypg9 (Apr 26, 2008)

The rise in the £ against the euro is down to the forthcoming requirements of the Spanish and Portuguese Treasuries to raise finance to repay due debt. Bond yields are predicted to rise thus thecurrent _frisson_ in the markets.
However.......the future for the £ is not so secure. Recent economic data have not been encouraging and since the economic strategy of the Coalition is based on low interest rates and a weak £ to boost exports and keep down inflation it is possible that the BoE will go to its fallback position and introduce more QE to keep rapidly rising inflation down.
So gather ye rosebuds while ye may....
This situation may be shortlived....or not.
I got almost 1.19 to the £ yesterday via my dil who works in the City.....methinks the time has come to buy in a few more euros...


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## Joppa (Sep 7, 2009)

mrypg9 said:


> The rise in the £ against the euro is down to the forthcoming requirements of the Spanish and Portuguese Treasuries to raise finance to repay due debt. Bond yields are predicted to rise thus thecurrent _frisson_ in the markets.
> However.......the future for the £ is not so secure. Recent economic data have not been encouraging and since the economic strategy of the Coalition is based on low interest rates and a weak £ to boost exports and keep down inflation it is possible that the BoE will go to its fallback position and introduce more QE to keep rapidly rising inflation down.
> So gather ye rosebuds while ye may....
> This situation may be shortlived....or not.
> I got almost 1.19 to the £ yesterday via my dil who works in the City.....methinks the time has come to buy in a few more euros...


I think further QE is dead in the water. Interest rate rises sooner than later (Q4 2011) are more likely.


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## jojo (Sep 20, 2007)

Joppa said:


> I think further QE is dead in the water. Interest rate rises sooner than later (Q4 2011) are more likely.


As much as a lot of us "expotties" want the pound to rise against the euro, I'm not so sure that the British government want that as it would cause problems in the UKs up and coming (lol) export industry!!? therefore no more QE and the raising interest rates could cause that to happen

Jo xxx


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## mrypg9 (Apr 26, 2008)

Joppa said:


> I think further QE is dead in the water. Interest rate rises sooner than later (Q4 2011) are more likely.


I hope you are right.


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## Joppa (Sep 7, 2009)

jojo said:


> As much as a lot of us "expotties" want the pound to rise against the euro, I'm not so sure that the British government want that as it would cause problems in the UKs up and coming (lol) export industry!!? therefore no more QE and the raising interest rates could cause that to happen.


It's a fine balance between having a competitive pound for export verses not stoking up further inflation by raising the cost of raw materials and fuels through a devalued currency.


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