What is happening to the £

[olive]

[anyroads]

Seems there is a bit more scaremongering going on at the moment.

People are buying, just in case Brexit actually happens, and we could be looking at 1.10 / 1.15


anyroads

Just like it was a couple of years back with no Brexit to worry about.

Was in town today, and saw 1.10 offered, and that was for spending £500.

Indeed, what is happening to the £.

Europe if anything is even in more trouble.

anyroads

[Devils Advocate]

As I said on your resurrected quote from June, we've been here before, and lower for that matter pre. the Brexit result.

As for the future I can't say for sure, however I am confident it'll be up and down as it's always been.

[flyeogh]

The current volatility I find quite interesting. But what can you do? I guess the same as the banks have had to do and increase your liquidity and reserves (if you can).

One good thing about a low pound is the help it gives those property owners who need or want to return to blightie. My Spanish wife is happy about that but I for sure want to stay here

I think Cid made a fair point about Brexit should be equally bad for both the Euro and the Pound (all other things being equal). I'm guessing the current rapid dip relates more to the quick action of the Bank of England and is a short-term effect (even a planned short-term effect ). After that as Devil's Advocate says ups and downs will continue until negotiations with the EU get underway and there is a little more clarity of where we might be going.

But I'd be interested to know about any members who have actually changed their plans due to the exchange rate or their predictions of where it might go. Also any signs of more brits selling or buying. Around here there has recently been more property movement and I've noticed a few brits looking at property (we are not in a brit area so you do notice them). But Cadiz is not too typical of Andalucia in this respect.

[BENIDORM]

I doubt that many Brits will change their plans either 'leaving or arriving' in Spain because of exchange fluctuations, however as I've reported on another thread people seem to be more influenced by the general state of UK at the present time ( and Roundabouts ) and that is motivating some to move to Spain and elsewhere.
And Yes I'm aware of more Brits viewing properties, some for permanent living and others for part time-future permanent homes.

Regards,
Gordon

[Devils Advocate]

Good post Flyeogh.
As you allude the exchange rate is beyond all our control so however painful it may be for some it is not worth getting upset about it as there's little you can do about it.
One thing that is poignant though to me is that as the rate approaches parity it puts Greece's unit of currency on par and equal to the UK's, some may disagree but that makes me realise all is not right with the European Union, it is nonsensical.

Anyway, no politics. To answer your question about changes then personally yes.
We've been mulling for the last couple of years about the logic in keeping the Casa over there. Love it but it now gets used less and less as other interests take over.
The constant hassles of making sure bank is topped up, looking after the land, ITV for the car and just general annoyances have made us realise we can still visit Andalucía and our Spanish friends but rent a place rather than own a folly which is in darkness for 46 weeks per year as we visit less and less.

So rightly or wrongly we've put the ball in motion to market it. Reasoning is with the exchange rate so poor it is actually beneficial as you know for selling. It will enable us to market the house at a far cheaper price to realise the same amount of Sterling when sold. Buyers are mostly none Brits in our area so hopefully the plan may work and the house will be cheaper than other comparable 3 bed 2 bath and pool houses in that area. If not then no problem, we are not desperate sellers. If it does sell then happy days.

I'll keep you posted

[anyroads]

Wow !

Things looking up already.

Caxton have just written to me offering ....1.1049.

As the song goes ( hopefully ).. The only way is up !

anyroads

[morlandg]

Currencyfair are offering 1.1202 at the moment.

[Lyric]

Overnight I bought 300€ with Currencyfair, had too unfortunately, at 1.1296.

[costakid]

so now we are all paying 15% more for our lovely lives in the sun.

[flyeogh]

Costakid 15% more of what? Looking at it another way: Only one year in the last eight is better with regard to the average pound euro rate than this year (year to date). So the trend remains positive.

And with weaker inflation in Spain than the UK any drop is offset for those with any UK non fixed income/pension, agreed by a small amount but every little helps.

I cannot predict where the pound is going any more than anyone but every indication is that this current rapid fall is due to action be the Bank of England (being overly prudent) and the uncertainty of Brexit negotiations (including UK negotiations with those outside the EU which may be more important).

And as you say we get lovely lives in the sun in return for our pounds

[anyroads]

EEk...

Was going to buy some this morning for a break in mid November.

Less than 1.09, so will instead be raiding my euro bank account.

I like to top up a Caxton card for spending money, but not at these rates.

It may not improve, but that is a chance we all have to take.

anyroads

[costakid]

Sterling is 15% weaker than last year so anyone who earns in £ and transfers to Euros has taken a 15% hit.

[anyroads]

Not just people working..

All people on a pension out there !

anyroads

[flyeogh]

Sterling is 15% weaker than last year so anyone who earns in £ and transfers to Euros has taken a 15% hit.

ok understand so you are saying an average rate should be 1.27 more of less. All I'm pointing out is that over the first 9 months of the year the average was 1.247 so for example a pensioner even if the rate stays at 1.1 till the end of the year will have seen an average rate of about 1.20.

And of course this low exchange rate will lead to UK inflation (unless something very weird happens) which will aid those on state pensions in the future.

So not as bleak as it may appear .

[peteroldracer]

I don't see how UK inflation helps state pensioners, either in the UK or overseas, unless it is only in September thus triggering a miniscule increase in payments.

[Lavanda]

As far as I can work out the low pound will help with the exports of all the zillions of things that the UK manufactures. Of course the imports of the raw materials will become more expensive so the items will need to be more expensive as a result. Not to worry. The UK imports a great deal of food. All this will become much more expensive so we won't need to worry about what happens to pensions as a lot of pensioners will die of hunger. Brexit is going to be interesting.

[flyeogh]

I don't see how UK inflation helps state pensioners, either in the UK or overseas, unless it is only in September thus triggering a miniscule increase in payments.

Peter as I said it doesn't add up to a lot but if the inflation goes higher in the UK then the UK state pension will rise but prices in Spain may not rise by as much (and in recent years in part Spanish prices have actually fallen). It is that differential that adds a small benefit to the overall situation. It could easily be 5% over 3 years so not to be sniffed at.

As for the UK I'm with ex BofE boss Mervyn King who sees positives from a lower pound that will help negate issues relating to the uncertainty/the change over process caused by the negotiations of Brexit.

Since the Brexit vote the Euro and the EU have not had any headline disasters (just a gradually move of power in the direction of anti EU sentiment namely in Germany, Holland and Hungary). But Italian debt, the Syria issue, and doubts about the Ukraine's move towards the EU have not gone away.

Of course if Trump gets in then all bets are off and I'll be buying my ticket to Mars

[anyroads]

I am waiting for Brexit, a couple of weeks later the euro will collapse and we will all be getting 1.60 to the pound. although I have never got a currency prediction right

Maybe this is what "upset" katy !

anyroads

[Miro]

What, if anything, do peeps here think will happen to the ex-rate when (if) Article 50 is officially triggered in March? More certainty leading to strengthening Pound - or clock ticking with no clear plan causing £ to weaken further?