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Euro reached 1.39 to the pound today

Posted by rabbit-390317 - Created: 4 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by Frisbest01 - 4 years ago

The UK's budget deficit is 5.6% i.e. worse than France!!

Two things are driving the euros - quantitive easing and the likelyhood of an interest rise in the US. 

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Posted by clarksinfrance - 4 years ago

This is another huge reason the € is struggling:

"European Union finance ministers have granted France an extra two years to bring its budget deficit below 3% of GDP, as mandated by EU regulations.

This the third extension France has been granted since 2009.

France's budget deficit is expected to be 4.1% of GDP this year, as it struggles with high unemployment.

Critics have warned that the extensions undermine the EU's market credibility."

 

Ergo the money market charlatans have very little confidence in the Euro, so are selling the currency at nearly every opportunity. Leaving very few who want to buy.

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Posted by koat - 4 years ago

wasn't him!

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Posted by Itwasntme-998041 - 4 years ago

Joe me thinks will go above 1.45. no reason it should not reach 1.50. Frisbest, I implied nothing. I said  i said if labour coalition get in UK debt would go higher.

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Posted by Brian Stone - 4 years ago

While you've been posting it's just gone above the 1.40 mark!

 

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Posted by AQ-417490 - 4 years ago

Well, the banks have been reprimanded, but I'm not convinced they have learnt their lesson. Heavy corporate fines need to be followed up with punishment of  bank officials who are responsible for the policies implemented that cause the problems, instead of hiding behind corporate  liability, for which the customers end up picking up the cost.

The pound is not particularly strong, it's just that the euro is weak. The UK is certainly more service industry led than it used to be, but then look at Switzerland - no manufacturing to speak of, but the Swiss economy and the Swiss Franc are at an all time high.

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Posted by winda1 - 4 years ago

So joe-huelgot, do you think it will max out at €1.45 once the general election is over in May?

 Can QE be reinstated again  when it finishes in 2016 if nothing has improved?.

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Posted by PamandAndrew-390752 - 4 years ago

I guess economies can only improve if driven by exports and a weak currency is very helpful! Unfortunately the pound has increased to a rate that makes prices very uncompetitive when it comes to exporting and imports extremely cheap. This may be good for the consumer in the short term but I can't really see how the UK economy will strengthen in the longer term, it still seems to be based on the 'same old things' as before and is too biased towards the service sector, property, finance! I think the strength of the pound is due to 'games' that the 'big boys' play rather than an indication that everything is hunky dory. Just looking at the sector I work in is worrying, pricing is far too low in the UK and profit margins almost non-existant...I'm sure something has to break. Still, at least the banks have had a good telling off, that'll teach them!!! I'll be more impressed when some go to prison and have their assets stripped...I'm sure that's what would have happened to me if I'd done anything similar!

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Posted by AQ-417490 - 4 years ago

Given the completely different cultures of countries like Germany, on the one hand, and Greece, Spain, Portugal and similar, on the other hand - not to mention the differences in productivity and economic performance, one has to wonder if the euro can survive in the long term as a one size fits all currency. The weaker member states need to push forwards for similar goals as the stronger ones to make it work, but at present they are not just holding the euro back, they are dragging it down.

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Posted by orme2 - 4 years ago

Let's not forget also that the UK figures include money made by drugs and prostitution (this is allowed by the EU).  France doesn't include those figures (yet).