Pound sinks to record low as euro nears parity

Tom_Jones

Milarky wrote: »

According to Wikipedia these claims have been debunked

Well all conspiracy theorists are made out to be nutters aren't they ? We'll just have to wait and see what happens.

dunstonh

So no-one goes abroad to Europe on holiday?

As I said, it will have no direct impact on those that do not transact abroad.

Going overseas for a holiday is personal choice. You dont have to do that and most dont. If you can afford to do it and have a preference to do it then its not really going to make a difference. Its only going to be those that were close to not being able to afford it in the first place.

Of course, imports will become more expensive as well in the long run if it looks like sterling is going to remain at that level long term. However, in the short term companies are more likely to absorb the costs and the big ones would probably have put some hedging in place as insurance.

Charles1968

dunstonh wrote: »

Good for businesses exporting and no direct impact on the typical consumer who transacts nothing abroad.

A fall in the value of sterling would be OK if the UK was a net exporter, but we aren't. We're a net importer with a trade deficit greater than that of every other country except the USA. It's bad news that sterling is falling.

roddydogs

Must be wrong, Brown say this is a "Global problem" that began in the USA, so why are we losing more than the others?

gozomark

because the UK economy depends more on financial services than most

purch

It's bad news that sterling is falling.

Yes, especially if it continues.

GBP was overvalued in most terms 18 months ago, but now it appears to be undervalued.

Both scenarios are bad for the economy, but as most are pointing out the way our Economy is set up, undervaluation will be more harmful if it extends for any lengthy period.

Reaper

Tom_Jones wrote: »

Well all conspiracy theorists are made out to be nutters aren't they ? We'll just have to wait and see what happens.

We don't have to wait. The Amero is complete rubbish. See here for more details
Even without that you only have to read Hal's website to smell a rat. It's about as convincing as a Nigerian scam - it only takes in those who want to believe it is true.

Count_Dante

Do people realise how decadent it sounds when they complain about how the weak pound will make their european holiday more expensive? "Darn it, the crushed rubies and diamonds I sprinkle upon my food have gone up in price again"

The words "tough !!!!!!" spring to mind.

Count_Dante

Charles1968 wrote: »

A fall in the value of sterling would be OK if the UK was a net exporter, but we aren't. We're a net importer with a trade deficit greater than that of every other country except the USA. It's bad news that sterling is falling.

It is bad news, but a weak pound in the long run is the only this can be corrected.