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Will the pound ever recover against the Euro.
ringers
Posts: 76 Forumite
What do you think the chances of recovery are?
We want to buy a ski chalet (to let) in France. Obviously the weak Pound is going to reduce the lump sum we can put down.
I think the government is keeping the Pound weak to make exports cheaper to Eurozone and keep the UK money in the UK, while they get us out of the mess they got us in.
What do you think?
Will it recover to 1.40ish?
When?
Thanking you.
We want to buy a ski chalet (to let) in France. Obviously the weak Pound is going to reduce the lump sum we can put down.
I think the government is keeping the Pound weak to make exports cheaper to Eurozone and keep the UK money in the UK, while they get us out of the mess they got us in.
What do you think?
Will it recover to 1.40ish?
When?
Thanking you.
If you can keep your head, when all around you are losing theirs. You have underestimated the seriousness of the situation!!!
0
Comments
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Little chance of recovery in the short or medium term. The UK economy (see many other threads on this forum) is in deep trouble with a massive deficit. The only way the pound will get stronger against the euro is if the euro were to weaken. The pound is not going to strengthen.
It's not the UK government that is keeping the pound weak. It is the currency market because the UK economy is so weak.0 -
On the down side, you pay more for the chalet.
On the plus side, if you are paid your rental in euros, those same euros buy you more pounds
I can't see the problem. If you can afford it, do it.0 -
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It's a race to the bottom and the pound is winning."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Kabayiri,
Thats the way I see it, If I can avoid having to exchange any pounds into Euros (or as little as possible anyway) and then let it in Euro's. The state of the pound shouldn't really effect me.
And any money I make and bring back will be at a (almost) one for one basis.
Can't lose, can I?If you can keep your head, when all around you are losing theirs. You have underestimated the seriousness of the situation!!!0 -
The pound has been doing quite well against the Euro in the last month or so, I think we might see 1.20 in the next 6 months.0
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absolutely certain it will reach 1.40 again
although I can't say exactly when0 -
Expecting Stg will be much stronger against the Euro (if it still exists) by the end of the year around 1.30, only guesswork though.
Sorry Doctor Gloom and your tin hat thankers
If you want to unnerve a European, the revelation of a secret dinner of New York-based hedge funds conspiring against the euro is hard to beat. Europeans are right to worry – but not about the collusion itself. They should be much more concerned that some of the world’s smartest investors are convinced the euro has only one way to go: deep down
http://www.ft.com/cms/s/0/b0260ac6-2a1b-11df-b940-00144feabdc0.html
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Long term the Euro is absolutely screwed.
A failed experiment that ties basket case economies urgently in need of devaluation and ZIRP, to the opposite policy of a German dominated central bank that has an irrational fear of inflation.
In the meantime however, "the markets can remain irrational far longer than you can remain solvent."“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Sterling was overvalued at the 1.40 to 1.50 mark, and is now undervalued at the 1.10 - 1.15 mark. Markets always overshoot and correct with time. Just witness the house price overcorrection in 2008, which has been gently unwinding since Q1 2009.
Certainly on a PPP basis, sterling is undervalued at the moment. Much of this is down to uncertainty about the shape and form of the new government. Once the new govt (of whatever hue) pushes forward with the required budgetary reforms, this should allow sterling to recover some ground.
I think the days of 1.40 or 1.50 are unlikely to return any time soon, but a target of 1.20 - 1.25 within the next six months seems possible.0
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