collapse of the euro

beingjdc

Apreciar wrote: »

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.

The best way to compare the relative strength of currencies in a broad way to see who is 'really' moving up and who is moving down is probably to use the Trade Weighted Index.

For 2008, roughly

The Dollar's is up from 77 to 81.
Sterling's is down from 95 to 75.

Apreciar

beingjdc wrote: »

The best way to compare the relative strength of currencies in a broad way to see who is 'really' moving up and who is moving down is probably to use the Trade Weighted Index.

For 2008, roughly

The Dollar's is up from 77 to 81.
Sterling's is down from 95 to 75.

When proved wrong change the argument. The tade wighted index is agains a basket of currencies, this particular thread is specific to the euro pound the dollar was bought into the theme; you now want to spread it further.

I am quite happy to withdraw from the discussion and give you the last word.

beingjdc

Apreciar wrote: »

When proved wrong change the argument. The tade wighted index is agains a basket of currencies, this particular thread is specific to the euro pound the dollar was bought into the theme; you now want to spread it further.

I am quite happy to withdraw from the discussion and give you the last word.

What you wanted to claim was that the Pound was not weakening, but that it was the Euro strengthening against the dollar and the pound. What I was demonstrating is that the Pound has collapsed, whereas the dollar has not moved substantially.

On December 31 2007, the Euro was worth $1.45
Today, the Euro is worth $1.39

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/currency/13/12/twelve_month.stm

Whatever has happened within the intervening year, you cannot argue that the Euro has strengthened against the dollar. It has fallen. In contrast, the Pound has fallen substantially against both currencies.

That's all I'm saying, the pound's weakness is primarily explained by the pound's weakness, not by the strength of any other currency.

clairbear_3

personally I think the £ has been oversold and it will rise back to 1.3 ish against EURO shortly.If I was holding a lot of EUROS I would swap to £s then back later:beer:

cottager

john.xs wrote: »

sorry to hijack thread but i was wondering what others would do if they had say 500 euro? ill probably go on a trip /hol to euroland in next year. so would you just keep hold of them so as not to incur further transaction charges and as the pound looks weak against other currencys.

Along the same lines, but slightly different question
Two trips to France in 2009, but no Euros in the hand yet... they're still pounds in the bank thorn-bush.

Looking into your crystall balls, worth dipping into savings early to buy some Euros now do you think, or a bit of wait and see?

I'm useless with this sort of thing, but if I'm following what's been said you seem to think the Euro might yet weaken? -- so it's a question of whether it weakens enough to cover however much more the pound might slide in the meantime?

mike88

I'm spending 2 months in France in the Spring and another 2 months in the Autumn. I'm not buying euros yet. I think the pound might dip further immediately after the next MPC meeting on 9 January when rates fall again but then move upwards as the eurozone lower their rates. I'm hoping our euro friends are behind the curve. If not I'm stuffed.