£terling and $ollar crashing against the €uro

[orangeman]

Euro weakens on rate cut evidence 

Many analysts have predicted that the euro will reach parity with the pound
The euro has slipped against the pound and the dollar as expectations rise that the European Central Bank will cut interest rates again on 15 January.

Eurozone inflation figures showed a bigger-than-expected drop while the purchasing managers' index showed a contraction in the service sector.

The pound is trading at 1.09530 euros while the dollar is at 0.74765 euros.

The ECB has cut rates from 4.25% to 2.5% since October, as inflation has dropped from its July peak of 4%.

Cutting interest rates can hurt a currency because investors buy other currencies to seek better returns.

The situation with the euro is less clear, however, because UK interest rates are also expected to be cut next week and US rates are effectively zero.

Instead, currency strength is reflecting the perceived relative strength of economies and in recent months the eurozone economy has been seen as less vulnerable to the downturn than those of the UK or US.

[toiletroller]

beig lazy here and cant be bothered sussin it out for my self.... so heres a question for any of you financial men. Im headin to San Fran in August  am i better to hold out til nearer the time to change my sterling??? Or is the exchange ralte set to continue fallin?

[heganboy]

the tides are changing:
http://news.bbc.co.uk/2/hi/business/7813435.stm

[cavan4ever]

1.00 EUR = 0.899844 GBP

[muppet]

beig lazy here and cant be bothered sussin it out for my self.... so heres a question for any of you financial men. Im headin to San Fran in August  am i better to hold out til nearer the time to change my sterling??? Or is the exchange ralte set to continue fallin?

There are those that think the dollar will fall in the second half of 2009 but that might be a bit late for you.

[Fear ón Srath Bán]

The euro's in descent at the minute because an interest rate cut from the ECB is imminent (15th Jan), and it's expected to be hefty because inflation in the Eurozone has plummeted (that's the primary driver of the euro's current woes), but... the Bank of England will be cutting rates tomorrow, and that's likely to be at least a half of one percent (to 1.5%), so the forex oscillations haven't finished quite yet.

Edit: €1.00 = £0.90215

[Fear ón Srath Bán]

Thar she blows... euro on the ascent again on the back of the very low figures for Britzone inflation.

€1.00 = £0.93115

Up 2.56%

[orangeman]

£ 1 = $1.38 - how low can you go ?

[orangeman]

Lower it seems !
Pound slides further as banks hit 
 


See banking shares
Pound vs dollar
Sterling's slide has continued, with the pound falling close to $1.37, as concerns about the UK economy and the banking sector intensified.

Sterling fell as low as $1.3715, its weakest level against the dollar since mid-2001.

The pound also weakened against the euro, with the single currency now worth 94 pence.

Banking shares took a further hit on Wednesday, with Barclays sliding more than 20% to a 24-year low.

Shares in Lloyds Banking Group, which now includes HBOS, were 17% lower at 37p.

The declines followed sharp falls in finance-related stocks in the US, amid renewed concern about the health of the global banking system.

Royal Bank of Scotland, however, was up 5% at 10.8 pence

[scud]

Lower it seems !
Pound slides further as banks hit 
 


See banking shares
Pound vs dollar
Sterling's slide has continued, with the pound falling close to $1.37, as concerns about the UK economy and the banking sector intensified.

Sterling fell as low as $1.3715, its weakest level against the dollar since mid-2001.

The pound also weakened against the euro, with the single currency now worth 94 pence.

Banking shares took a further hit on Wednesday, with Barclays sliding more than 20% to a 24-year low.

Shares in Lloyds Banking Group, which now includes HBOS, were 17% lower at 37p.

The declines followed sharp falls in finance-related stocks in the US, amid renewed concern about the health of the global banking system.

Royal Bank of Scotland, however, was up 5% at 10.8 pence 

thats hilarious! to end on a bright note however, RBS shares are up 5 percent to, hmmmm, still fcuk all!!

[nifan]

I just got back from NY on the weekend and my per diem did not go as far as it did a year ago!
The price of a lot of stuff in the states has really gone up in dollar terms, food was noticeably dearer i thought.

[orangeman]

I just got back from NY on the weekend and my per diem did not go as far as it did a year ago!
The price of a lot of stuff in the states has really gone up in dollar terms, food was noticeably dearer i thought.

Funny you should say that - I was talking to a friend who has been going Stateside for about 10 years now and he said this year that he found that it was a lot more expensive, even when you account for the drop in the value of the £.

[bailestil]

Typical. Going to new york in mid feb. Should i be thinking of buying dollars now? I can't complain really at the minute saying as i work in the south and live in the north.

[nifan]

hard to know what currency will do bailestil.
Dont expect things to be cheap when you get there, though as always in new york the price is heavily influenced by the area you are in.
For a bottle of beer in the meatpacking district it was 8 dollars (plus tip) which is a rip off for instance.

[johnneycool]

the meatpacking district

Are you talking about the village area?