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Pound-Euro 2016

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Jimbo:
The only thing that drags Skeggy from the fifties to the 21st Century is the huge offshore wind farm!

I can't see any reason why the pound will strengthen any time soon. Currency traders hate uncertainty. Theresa May's announcement that she'd trigger Article 50 in March was clearly designed to increase the Tory vote in the local elections. So far, that's all anybody knows. IMX also said "This could be the end of the pound as we know it."

Andy7:
OMG just when you thought it couldn't get any worse the pound this morning collapsed following aggressive selling in Asia, at one stage reaching 1.09! It's since risen to 1.11 but this will still imply a bank exchange rate well below 1.09.

At this rate the pound will soon be worth the same as a Zimbabwe dollar!

Forget Tasty Corner next year it will be too expensive, instead I foresee forum members dividing up a loaf of bakery bread while watching the Eastern Europeans living it up at the Little Prince!

Andy

Jimbo:
TravelFX now selling 1.09 - which is close to parity. Duh!

Jimbo:
http://www.bbc.co.uk/news/business-37609114

It's not quite that bad on TravelFX - 1.09 - If anybody can think of any reason why it might get better I'd be interested to hear it!

Jimbo:
The world of currency traders remains a mystery. As you may have noticed, the pound's been bobbling around at about 1.1 for a period.

TravelFX struggled up to actually selling euros at 1.1 today. That was, apparently, because post-Brexit-vote cost rises are starting to emerge and are now steadily increasing, with fuel the first rise. So we seem to be looking at at least a 2% increase in the cost of living next year, and possibly up to 5%.

In terms of holidays, we're all obviously now focused on next year. Most forecasts indicate that we're not likely to see the pound strengthen over the next two years or so, so it's possible to work out potential costs now. As the pound sinks the euro is rising. We can reasonably assume nearly pound-for-euro in 2017. So an apartment costing a typical 500 for two weeks will cost around £500 - it would have cost £446 at a rate of 1.12 and £442 at 1.13

Everything's going to cost more. But tavernas and traders in Agios Stefanos have tried very hard over many years to keep costs down. Try going to Kassiopi  or Paleo and see how much it costs. Given their escalating tax burden, I wonder how long they can sustain this.

So - to be positive - Agios Stefanos is likely still to be extremely good value for money.

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