Will someone please explain to me, if the euro is in trouble, why it's not decreased in value against the pound and made a lift pass much cheaper?
I don't know but I would like to buy a new mast from Europe and if the Euro dropped a bit i might be able to afford it. 🙁
Partly because the Bank of England rate is so low, which means no one wants to buy Sterling, and therefore it's worth less because of supply and demand. Good for exports though.
I would guess that it's mainly because the Euro inflation is staying put at around 3% while ours is over 5% (thanks to the 12% increase in VAT, or 2.5% increase on VATable goods prices) but there's little chance of the BoE of increasing interest rates to attack that inflation. (mainly because the expectation is that the inflation will fall back down in the short/medium term anyway)
So Euro has a marginally more attractive purchasing power integrity than Sterling at the moment for a given interest rate environment.
Dont confuse "Euro at risk" with currency weakness. The risk is euro denominated bonds not being as robust as they ought to be, not the underlying currency.
It is all to do with relative value. EUR and GBP are both in trouble and therefore relative to each other, they don't seem to move much - there is little demand to hold either currency.
it's 10% down so i dont understand your comment.
the euro is down a little, not as much as 10% though. the thing is, if the euro falls apart the UK is screwed as well. I suspect the markets are pricing that in.
my holiday is cheaper lol
booked in june and paid for in euros in December - winner 🙂
We've been printing money like mad (along with the Americans) to devalue our currencies. The ECB hasn't. Which is why half of europe is about to implode.
The output of the UK is so closely intertwined with the performance of the Eurozone that is difficult for investors justify a large switch from the relative base we have seen for the past couple of years.
Inflation is still being driven partly by efforts by companies to get prices back up to where they were in 2008 when the Euro was something like 1.45 to the pound. The UK is the cheapest place to buy many goods. I remember not too long ago when it was common to purchase a car from Ireland as it was so much cheaper. Pick up an Irish Argos catalogue and a UK one and the goods are still converted at 1.5 euros to the pound.
I like the fact that essentially ALL currencies are "in trouble", and thus in the same state, ergo that becomes the norm, everything else is just spinning bullshit.
Please don't let it fall in value between here and the new year, I'm in London next week!
Will someone please explain to me, if the euro is in trouble, why it's not decreased in value against the pound and made a lift pass much cheaper?
to be honest, I think if you are talking about lift passes for your winter holiday, the fluctuations in the Euro and the effect they have are probably of minor consequence.
