Why is the pound in a state of collapse ?

[6mauledrv]

It's the euro making most of the gains today.
e.g. up 1.3% against USD, 3% Yen, 0.5% ASD, down slightly against NZD.
The pound atm (12:1 1.06 against euro down 1.4%. Also down slightly against most currencies but 2.5% against swiss franc and NZD.
So today's desirable currencies are: Australian, New Zealand, Canadian dollars and, of course, the Euro.

[yllig]

Not now 1.052!!!

Wont be long now. Happy Christmas everyone !!

[John50]

Further drop. Now at 1.064 -- 94 p a euro !

[John50]

To say farewell to a friend, we popped into the 'Bog Road' pub on Cabo Roig strip this afternoon. We were the only customers. The chip shop next door - empty. Increasing numbers of premises closed down.

Parity approaches, maybe even worse and this will affect not only those of us on pound incomes but those who rely on us as well.

Gordon Brown's words will come back to haunt him and so they should.

£ = 1.078

[carman]

My God - what on earth has happened overnight ?

£1 now 1.10 euro and a euro costs 90.9 pence.

At this rate parity does seem feasible by Year End but beyond that ? Very worrying.

it gets worse, radio4 5pm uk time Wed 17 euro worth 1.04

[J J]

A weak currency is the sign of a weak economy, which is the sign of a weak government.

Who said that?

Gordon Brown in 1995.

[yllig]

There was an article in The Times today about why the £ has dropped again.

Pound dives on prospect of steep UK rate cut - Times Online

Seems its the MPC and the press talking down sterling again.

We have calculated our finances on sterling being equal but have not done it for it being below the euro. Too frightened to do that. As you say it could easily happen.

[6mauledrv]

It would be interesting to see where the benefits are of a low pound.
From what I've read, we do not export much any more and even if we did, who's gonna buy?
On the other hand, we import a lot and that will cost a lot more.
Strange how commentators seldom mention imports - am I missing something?
Cost of mortgages seems to be the most newsworthy item.
So where exactly will the UK gain out of this depressed currency?
I know the gov are not interested in expats but they should not ignore the plight of pensioners.
That's where the votes lie.

[John50]

If what I am seeing happening now is not a run on sterling UK Government, I really don't know what is ? The pound has fallen over 2% today alone and is now down to 1.087. That means a euro costs 92 pence ! There may be talk of parity but one pound = one euro is not a cast iron thing. The pound may well drop below parity, what then ?

Surely this will impact on food imports into the UK and cause the idiots to take measures to prop up the currency ? I know we are the great 'expat' unwashed and don't count for anything but perhaps when imports start costing a lot more, their arm will be twisted ?

Surely the BofE won't really cut interest rates again will they ?

[Warrior]

yep , new poster, but must agree with jhon 50 it can only get worse, just think of all the unsureties and we are only just starting into this mess ,really think bookings will remain high next year ? unemployment going on in the uk right now ? no massive unemployment!! no ones sure of job security, who wants to spend £ 4 FOR A BEER in spain people will stay at home can get 18 holes on a good course for £6, not in spain ,spain is finished so is briton atleast for the next ten years!!!!!!!!!!!
Bob

My God, where on earth are you paying GBP 4 for a beer in Spain - I bet it´s in a Brit or pseudo Paddy Bar, you can still get a large San Miguel or Mahou in my local Spanish bar for €1.75.

[Armin Tamzarian]

My God - what on earth has happened overnight ?

Federal Reserve set US interest rates at 0%.

UK expected to follow suit (of course).

Knock-on effect against Euro for both currencies.

[John50]

My God - what on earth has happened overnight ?

£1 now 1.10 euro and a euro costs 90.9 pence.

At this rate parity does seem feasible by Year End but beyond that ? Very worrying.

[bob@goodman9741.fsnet.co.]

yep , new poster, but must agree with jhon 50 it can only get worse, just think of all the unsureties and we are only just starting into this mess ,really think bookings will remain high next year ? unemployment going on in the uk right now ? no massive unemployment!! no ones sure of job security, who wants to spend £ 4 FOR A BEER in spain people will stay at home can get 18 holes on a good course for £6, not in spain ,spain is finished so is briton atleast for the next ten years!!!!!!!!!!!
Bob

[John50]

Well John50, I was critical of your earlier posts in this thread, when I said that I didn't believe the situation would be anything like as bad as you make out. And I still think your analysis is wrong.

I haven't seen the local rag you refer to but I am familiar with the source article they've obviously lifted those figures from.

The drop in bookings for New Year has little to do with the foreign market (British or otherwise). The majority of tourists to the Costa Blanca is Spanish and over the New Year period those staying in hotels are in the main Alicantinos. It is THEIR unwillingness to spend because of the crisis that is causing the substantial fall in bookings.

Time will tell.

Pound/Euro now at 1.108 a euro costing 90.2 p to buy and dropping fast as it has been all day.

[Armin Tamzarian]

A while back I was dismissed for saying the fall of sterling would have serious consequences for tourism here. In the local rag today, there is coverage of Spanish press reports that bookings for Christmas and the New Year are down 30% this year although Benidorm has reduced that to a 20% drop by offering cut price trips for Spanish pensioners.

Well John50, I was critical of your earlier posts in this thread, when I said that I didn't believe the situation would be anything like as bad as you make out. And I still think your analysis is wrong.

I haven't seen the local rag you refer to but I am familiar with the source article they've obviously lifted those figures from.

The drop in bookings for New Year has little to do with the foreign market (British or otherwise). The majority of tourists to the Costa Blanca is Spanish and over the New Year period those staying in hotels are in the main Alicantinos. It is THEIR unwillingness to spend because of the crisis that is causing the substantial fall in bookings.