collapse of the euro

BenL

angus1024 wrote: »

Thanks,
I will look at your posts.

I have been plotting various currencies against each other with time and it is interesting. At the start of the oct 1 pound was worth 1.25Euros and now its about 1.,05 euros, so if I had managed to buy euros in sep and changed them back now I would have made (approx) 20% profit.

You could have "made" the profit, if you changed today to Euros and it carried on sliding you could "make" profit as you put it.

If for instance the UK joined the Euro next week I don't believe (but am happy to be corrected) that the exchange rate on the day is used.

I remember reading something about the calculations and a figure of 1.45Euro to the £ being banded around as this is a more realistic valuation of the currencies to each other.

cos69

The pound will continue to get weaker until we get a change in government policy on borrowing and interest rates - not sure there is much else that can help

cos69

BenL wrote: »

..... I remember reading something about the calculations and a figure of 1.45Euro to the £ being banded around as this is a more realistic valuation of the currencies to each other.

I doubt Germany, France or Italy would allow the pound in below that figure and it could be higher like 1.5 Euro

newsaver2008

Cos69 - I might dispute your statement that a holiday outside euroland is cheaper:) I am now resident in Turkey and prices have shot up recently and especially with the anticipation of a large quantity of 'euro refugees' (nice way of expressing things, don't you think?) preparing to holiday there next year, to be honest, there wouldn't be much difference between going to say Turkey or Spain.

beingjdc

Yeah, one scary thought for future inflation is that while it's declined against the Euro and Dollar, the pound has slumped from being worth over 15 Chinese Renmimbi to being worth less than 10!

Where's all our stuff made, again?

cos69

newsaver2008 wrote: »

Cos69 - I might dispute your statement that a holiday outside euroland is cheaper:) I am now resident in Turkey and prices have shot up recently and especially with the anticipation of a large quantity of 'euro refugees' (nice way of expressing things, don't you think?) preparing to holiday there next year, to be honest, there wouldn't be much difference between going to say Turkey or Spain.

I think your right, with people like me looking outside Euroland for their hols, we are going to be driving up prices elsewhere. I have noticed some holiday destinations I use frequently tend to put up prices by 5% to 10% each year when they can, but not sure what happens when there are not many tourists booking. Might try a late package holiday booking for this spring rather than put together my own trip as I usually do - suspect there might be some bargains to be had

angus1024

Thanks (LesU)

If you plot how much currency 1 USD would buy over the last few (5?) months - you would see the chinese yen is constant whereas the (GB) pound and Japanese yen move together. the AUD and EURO move in different ways. I don't understand it - but it seems the USD is thus some yardstick.

I have been thinking that it may be wise to invest in currency rather than have saving here. But how on earth does one do it?. Clearly one has to avoid the 'tourist' rate in currency conversions.

angus1024

(correction - I made a mistake about the japanese yen - sorry)

LesU

cos69 wrote: »

I think your right, with people like me looking outside Euroland for their hols, we are going to be driving up prices elsewhere. I have noticed some holiday destinations I use frequently tend to put up prices by 5% to 10% each year when they can, but not sure what happens when there are not many tourists booking. Might try a late package holiday booking for this spring rather than put together my own trip as I usually do - suspect there might be some bargains to be had

There is another factor in this. Remember that times are getting harder in Euroland as well as here. If those tourists go outside of Euroland for their holidays then the locals can put up their prices and still look cheap to the Euro tourist. It's just us poor Brits that will see increased costs.
Package holidays are supposed to be the way to go in 2009, as some of the holiday companies paid for their deals at a more favourable rate earlier in the year. Of course that is just 2009, 2010 will be expensive for us all in Europe unless the pound recovers.

Apreciar

beingjdc wrote: »

A year ago, the pound was worth $2, and €1.35. It is now worth about $1.5 and €1

The dollar was worth €0.67 and is now worth €0.71.

So in fact over the last year the pound has fallen against everything, and the dollar has strengthened slightly against the Euro.

My original statement was correct, the dollar has weakened against the euro.
In this year in May it was 1.59 , it has been as low as 1.24 and at the moment is 1.40. I will grant you that it has not weakened to the extent that the pound has, never the less the euro will fall at some point; this will improve the pound and dollar against it.