Pound down again

[AnonymousParticipant]

I don’t understand why as the Euro isn’t exactly shining against most other currencies but I see the pound is slipping again. Down to €1.14/£0.87 today.

I haven’t seen any press comment. Can anyone explain what is happening here?

[AnonymousParticipant]

Budget forecasts lower growth = higher PSBR/GDP = more QE2= more inflation = weaker Pound 😉

That’s my stab at it.

[AnonymousParticipant]

It’s just hit 88p to one Euro.

The Euro is holding surprisingly well against the Swiss Franc which I’m more surprised about.

[AnonymousParticipant]

@charlie wrote:

It’s just hit 88p to one Euro.

The Euro is holding surprisingly well against the Swiss Franc which I’m more surprised about.

Only sort of. It’s down 11% in a year against the CHF, 20% in 3 years.

Which makes me wonder, why aren’t the Swiss buying up Spanish property?

[adiepParticipant]

Interest rates. The ECB are promising rate rises, Euribor is heading north. The money will follow it.

[petejParticipant]

@mark wrote:

Which makes me wonder, why aren’t the Swiss buying up Spanish property?

Funny you should say that, I have noticed a good number of Swiss registered cars in and around the Moraira and Javea areas!

[AnonymousParticipant]

I would love to be the fly on the wall when the Swiss are viewing the properties & comparing the quality of construction in Spain in comparison to Switzerland. Could this one of the reason or perhaps they have funds of protaganist like Roca with them & knows a thing or two about Spain.

[AnonymousParticipant]

I’ve met quite a few Swiss in Denia and the number appears to be increasing.

[katySpectator]

@mark wrote:

@charlie wrote:

It’s just hit 88p to one Euro.

The Euro is holding surprisingly well against the Swiss Franc which I’m more surprised about.

Only sort of. It’s down 11% in a year against the CHF, 20% in 3 years.

Which makes me wonder, why aren’t the Swiss buying up Spanish property?

Maybe because there is a big world out there, Spain is not the sort of place that appeals to the majority of Swiss. Having lived in Geneva I can see why they wouldn’t. The Swiss are a canny lot anyway and they like perfection and super cleanliness.

[AnonymousParticipant]

@I wrote:

The Euro is holding surprisingly well against the Swiss Franc which I’m more surprised about.

@mark wrote:

Only sort of. It’s down 11% in a year against the CHF, 20% in 3 years.

I wasn’t being very clear, was meaning it’s been holding well during the last few months since the Irish bailout (end November), murmurings of Greece defaulting and now Portugal’s likely bailout. I would’ve thought sentiment would have deserted the Euro for the traditional safety of the Swissy but during these four months the only difference is a drop from 1.32 (end Nov) to currently just under 1.29.

[AnonymousParticipant]

If you switch on Sky News and watch the fireworks display in Libya, you’ll know why the pound is falling. Those fireworks are expensive, something like a million pounds a bomb.

[AnonymousParticipant]

Whats, a million pound in love & war !!!!!!!!!!

[rt21Participant]

@Rocker wrote:

If you switch on Sky News and watch the fireworks display in Libya, you’ll know why the pound is falling. Those fireworks are expensive, something like a million pounds a bomb.

I would have thought the biggest factor affecting the appreciation of the euro against the pound was the bullish statements coming from the ECB about a rise in interest rates.

Richard

[Author]

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