Pound versus Euro exchange rate.

[styley]

Recently the pound sterling has dropped a lot in value against the euro. Does anyone know is this trend set to continue, or what is the outlook?

[Ethel]

I think it will be a good few months before it even starts to recover.

Now is the time to buy if you want to gamble.

[R1Geezer]

if I knew that i'd be a currency speculator!

[honest_joe]

Yes I think so! We are a rudderless ship clinging on to past glories without a lifebuoy trying to appear ignorant about our current situation. Ever since we came out of the gold standard and the � was king we have seen the demise of sterling through many devaluations when the exchange rate was fixed and now the sliding of our currency to oblivion.

[jno]

It's not just the pound falling but the euro rising. Europe is hopeful of sitting out the property crisis (mortgages and so forth) around the world but building is a major industry in Spain - all that illegal development on the Costas - and is being hit hard. Some continental banks have got themselves in a spot of bother like Northern Rock. German unions are demanding big pay rises, which will damage the German economy. So it's possible that the european economy could go pear shaped and drag the currency down. My guess is no big changes for the next 6 months, but I could be wrong. Meanwhile sterling is still doing ok against the dollar - not as well as the $2.10 last year but still $1.90 or so

[sp1214]

If I had invested in either the � or the $ exchange rates I would get my money out pronto although its probably too late now. The $ is dragging the � down to these low levels.