£terling and $ollar crashing against the €uro

[Gnevin]

The Tories are coming in to power in England.  They have stated they will never join the Euro.  The notion that they will join in 2010/11 seems very far fetched.

It would do England a lot of good to be in the Euro though...but they don't believe in "One Europe" and still dream of the "Briitsh Empire"

Nothing to do with British jingoism despite that clever spin being put out to the redtops.

If they join they will become the second oil producing nation to trade their oil in Euros.
The first was Iraq prior to the invasion.

The Yanks will never let it happen.

They don't trade in pounds now as far as i'm aware so why would they change if they join the Euro?

They trade in dollars as do all oil producers.

http://en.wikipedia.org/wiki/Iranian_oil_bours

http://en.wikipedia.org/wiki/Iranian_oil_bourse 

Yeah and that too. 

[muppet]

Sorry forgot about that, of course that had nothing to do with escalating tensions between the Yanks and Iran. 

Britain won't join the euro.

[SuperMac]

Listen, I know feck all about economics and finance etc. But if sterling continues to fall, will it cause international finacers, international banks etc to start selling sterling hurting it long term as a viable currency ?

[full back]

Listen, I know feck all about economics and finance etc.

I probably know even less.............

Is sterling in free-fall or what is the story?
Need to get dollars & sterling has fell recently against the dollar but will it continue to fall?

[armaghniac]

Is sterling in free-fall or what is the story?
Need to get dollars & sterling has fell recently against the dollar but will it continue to fall?

Who knows? Sterling is up a cent against real money today. For what it is worth the ESRI expect an average exchange rate of £1 = 0.85 for next year in their recent report. I would have thought a figure closer to €0.90 myself.

[thebigfella]

The Tories are coming in to power in England.  They have stated they will never join the Euro.  The notion that they will join in 2010/11 seems very far fetched.

It would do England a lot of good to be in the Euro though...but they don't believe in "One Europe" and still dream of the "Briitsh Empire"

Nothing to do with British jingoism despite that clever spin being put out to the redtops.

If they join they will become the second oil producing nation to trade their oil in Euros.
The first was Iraq prior to the invasion.

The Yanks will never let it happen.

They don't trade in pounds now as far as i'm aware so why would they change if they join the Euro?

They trade in dollars as do all oil producers.

So why would they start trading in Euros then?

Bump ?

[bcarrier]

from irish times ...

Like the Central Bank, the ESRI makes technical assumptions about interest and exchange rates. This is a bit of a cop-out given the importance of each to a country like ours. For the record, they have the euro/sterling rate hitting parity later this year before falling back to average 85 cent in 2010. They are rightly fearful that sterling will remain weak given the huge fiscal problems in the UK – that country will have a budget deficit of 13 per cent next year – higher even than the forecast Irish one.

The banking class are making money out of and stoking up volatility IMO. The Uk budget deficit is real though.

[armaghniac]

The Uk budget deficit is real though.

While in Republic we had the mother of all booms and most people now accept that there is going to be a couple of hard years afterwards, I am not sure that the UK has fully taken on board the extent of their problems. NI is  pro rata the highest recipient of UK government largesse and the effect will be felt there. Even the Ulster council may suffer.   

[EC Unique]

With the current exchange rate the northern Retail business is flying. Christmas will be the best in years.

[Maiden1]

My mother and father in law took all there savings (about 15000 euro) and transfered it into sterling about a year ago as they thought the euro was getting very expensive.  I know it is not funny for them but I had to fight the urge to LOL when they told me that.

[muppet]

The Tories are coming in to power in England.  They have stated they will never join the Euro.  The notion that they will join in 2010/11 seems very far fetched.

It would do England a lot of good to be in the Euro though...but they don't believe in "One Europe" and still dream of the "Briitsh Empire"

Nothing to do with British jingoism despite that clever spin being put out to the redtops.

If they join they will become the second oil producing nation to trade their oil in Euros.
The first was Iraq prior to the invasion.

The Yanks will never let it happen.

They don't trade in pounds now as far as i'm aware so why would they change if they join the Euro?

They trade in dollars as do all oil producers.

So why would they start trading in Euros then?

Bump ?

Because they would be in the euro and would hardly involve dollars say for example if they sold to any other eurozone member.

[orangeman]

£ sterling suffering heavy losses this week against the US $   -  anyone hazard a guess why

[tyronefan]

its got to do with the rising deficits of some European countries   particularly  Greece, Portugal. Spain and Ireland


http://www.nytimes.com/2010/02/06/business/06markets.html?hp

[magickingdom]

its got to do with the rising deficits of some European countries   particularly  Greece, Portugal. Spain and Ireland


http://www.nytimes.com/2010/02/06/business/06markets.html?hp

that would not make the euro surge now would it? (the US deficit i think is about $1.3 trillion this year)

[CiKe]

no the € doesn't look like will be surging anywhere. The PIGS are all being lumped together amid growing concern as people look at Greece who have been fiddling the books and a bigger than expected deficit in Portugal people think where is next. Spain has one of the better debt to GDP ratios, but is near 20% unemplyment and Spain's banks have been crucified in the market over last few days, much more so than other countries banks. Santander reported strong results way ahead of consensus and only about 25% of net income comes from Spain, yet stock is down hugely in space of couple days.

Currency wise who know what is going to happen. People dont seem to think the EMU will actually break, but feeling is that France and Germany won't bail out people willy-nilly. Feeling that Greece and other countries have a lot more to do before seeing the same sort of good will afforded to Ireland's budget cuts. Apart from that EU growth is anaemic.

The USD deficit is downright scary and we very much seem to be running the risk of just pushing this a few years down the line. China has started diversifying its reserves but would be none too pleased to see a $ crash at this point in time.

Then there is sterling. Massively leveraged economy which is hugely dependent on financial services and with a soaring deficit and debt/GDP ratio. PIMCO's Bill Gross described UK gilts as nitroglycerine the other day...

Big deficits and huge leverage all round but then again Japan has had ENORMOUS debt/GDP ratios for years...it hasn't quite burned them yet but they have been fighting deflation for God knows how long. A few respected financial commentators really see Japan going tits up several years down the line.

Personally I wish I was earning AUD...those lucky buggers have a currency which looks well supported and a great lifestyle!