Will the EX Rate ever go back up?

Either that or Gordon's been shooting his mouth off again...

That sounds more likely

Its all down to something that Mervyn King said on tuesday about zero or even negative interest rates in the UK then worries about the Lloyds failing the new FSA stress tests on Friday morning have taken Sterling below the 1.11 (0.90) There are further forercasts to see it as low as 1.05 now im afraid

Typical!

As soon as I get a large wod of dosh that I want to send over from the UK... The ex-rate does exactly the same as a brick does trying to float on water!!!

I find it interesting that the ex-rate is doing exactly the same as it did this time last year, but this time nobody is mentioning 'credit crunch' and some countries such as France and Germany are talking recovery from recession!?!?!

I don't think borrowing 16 Billion last month did us any favours . Neither is the B of E printing money we don't have, like its going out of fashion .

Of course Germany will steam out of recession as the brunt of the GM redundancies will be borne by the Brits, Belgians and Spanish! All helping to boost the mighty Deutsche Mark German Euro (bet they rue the day they sold their currency!!)

Mark

Dont worry an election is coming soon - change of government and the rate will gradually increase.  I think everyone has lost confidence in our government.

Damm right can't wait to see the back of Brown & Darling!

lets hope so but i wouldnt be so sure, thay have made long lasting damage to the economy with the size of public debt in the UK

Yes but size would the debt be if they got another term in office!

I'd hate to even think about!

What chance has the poor old pound got, just about gets over Brown and Darling and then today Mervyn King comes out and indicates that he would prefer a weak pound.

Down 1% today 1.09, not much chance of recovery short term.

http://news.bbc.co.uk/1/hi/business/8272661.stm

Mervyn King Bankster. If you are reading this...

I'll bet you haven't got a Euro Mortgage have you mister?

In the words of John Wayne

Why I oughta...

Don't think Brown and co (including King!) really give a **** about anyone who can afford a Spanish property! (or even can't afford it now with the ex rates!

I can't see it improving much soon, or it would have carried on going up I guess?. I wouldn't put much faith in the Tory's saving the day though, I think they will probably make a bigger balls up than labour?. The country certainly wants change though, no doubt about that, but will the grass be greener?, we can but hope!

It looks like the £/€ exchange rate is ticking up nicely.  Currently at 1.16.

This is presumably due to worries about Greece (and the other PIGS) defaulting and general economic weakness in these countries.

 The UK edging out of recession and reports like this will ease the pound up slightly....although impending bad news form the UK may halt it's progress..........

Released yesterday...

“The real estate sector is bankrupt”. That is the claim made yesterday by Mr. Santos González Sánchez, President of the Spanish Mortgage Association (AHE), speaking on behalf of Spain’s mortgage lenders. This has serious implications for the Spanish banking sector and the wider economy. 

Spanish developers had a combined debt of 324 billion Euros in the third quarter of 2009, the equivalent of around 30% of Spanish GDP, according to figures from the Bank of Spain. The interest bill alone is around 15 billion Euros a year, which developers cannot hope to pay.

With property prices falling, the banks are increasingly reluctant to swap debt for property. They are said to be ready to turn off the taps and refuse developers more credit, fearing that it could become a downward spiral.

More than 50% of the debt was used to buy land, for which there is now no market. “Whilst those plots of land are not properly valued, the financial system can’t start afresh, and won’t be able to finance new homes,” Mr. González told the Spanish press.

“The viability of the property sector is in question and it is putting the financial sector in danger,” warns Mr. González, who called on “someone” like the banks, the Government, or the Bank of Spain to take a lead in tackling the problem. All of them are said to be aware of the danger, but all of them are looking the other way.

“Bad Bank” solution

The solution lies in creating a “bad bank” where all the toxic real estate loans can be dumped, freeing the banks from their bad debts and enabling them to start lending again, argues the AHE.

Worst of all, the situation with the developers is pushing up the cost of credit for the whole Spanish economy, through lower bank credit ratings, argue the AHE. “The developers’ debts affect the credit ratings of the financial institutions, with all the consequences that has for a sector that still hasn’t fully recovered its liquidity. The financial system will have to explain how long it can bear this situation,” said Mr. González.

This serves to remind us that, on the whole, the Spanish property sector is far from out of the woods, and the longer the problem drags on, the more damage it does to the Spanish economy.y halt it's progress.

Interesting article. In th UK the bank's toxic debts have been transfered to the taxpayer and the government (of whatever colour) needs a credible plan to balance the books. When this happens the pound will strengthen.

In Spain everyone is ignoring the toxic debt hoping it will simply go away. This will remain as a break on the economy for years. However because the Euro rate is based on the Euro economy, and other Euro zone ecomomies such as Germany are doing well the exchange rate improvement (for people who want to change Stirling into Euros) will be limited.

I'm no expert but I don't think the experts know any more than we do. I am hoping we will see 1.20€ to the pound before the end of the year but don't expect much better than that.

The exchange rate is edging up to 1.17, which is a nice little pay rise for me (earning sterling but living in Spain).  It makes you wonder what the exchange rate would be without these worries over a possible hung parliament.  More like 1.25?

If there's a Conservative win on Friday then I reckon the rate will improve even more.  Good news for tourists and pensioners.

Do you know I was thinking the sane thing along the lines of the ex rate and was just about to go and find this thread! lol

I also think that the upwards turn would be far greater without the prospect of a hung parliament!

So "Come on Tories!"

Being Welsh and a staunch Labourist (used to be, that is), I find myself gob smacked to be typing those words, but I have!!!!

I also think that fear of further contagion of 'rescue deals' for other Euro zone countries such as Spain,Portugal and Ireland have shaken confidence in the Euro.

This does however have a knock-on effect on the plus side for Europe, as it makes Exports cheaper and also might help encourage tourism!

 Edging more towards 1.18 now (1.176) . I don't like Greece as a place, but I love them for de- valuing the Euro!!!

Mark

my advice would be if you are going to change some money do it now before the hung parliament is announced on Thursday......watch the pound fall again then............. 

Surely a hung parliament is already priced into the exchange rate?