Pound-Euro 2016

[Jimbo]

As you may have noticed, the euro rate is still rubbish. But sterling did climb by two points yesterday after the High Court judges ruled that Parliament must agree to any triggering of the EU exit.

So, as I write, the TravelFX euro rate is 1.1115

No comments from here. But I think it's obvious that cheap holidays are extinct.

[cambridge]

Good value holidays may not be though.

[Linnetman]

Just booked for two weeks going 8th Sept, 482.00 each flying from Norwich. Can't be bad less than we paid 2 years ago!!

[Tredegar Boy]

Silver lining if there is one post Trump is the rising euro. 1.15 plus at the moment.

[Jimbo]

Yes - the pound has gone up slightly more than the euro in the last twenty-four hours as all currencies look stronger than the dollar. As I write it's 17:40 GMT and the Interbank Rate is 1.15 and cash on TravelFX is 1.134

The yen and the euro are apparently the strongest currencies at the moment.

Of course, we're still a long way from where we were a year ago, when £1,000 would get you €1,400

[Dupnica]

Hi Linnetman,was that for a package or flights only?

[rilo57]

We are just back from visiting family in uk and cost us €1.12 to the £....was last may since we where over and have noticed a rise in prices of various items.but also noticed more British products available...or are we just dreaming?

[Jimbo]

It's wobbling around all the time as the money traders try to make sense of the implications of Trump + Brexit.

Currently the Interbank rate is just over 1.155 and TravelFX selling at 1.1450

I really don't know if there are more British goods in the shops. We tend to buy local vegetables, meat, and so on anyway. Our local butchers can tell you which farm the meat came from! But I think (and I may be wrong) that we will have to see an increase in UK goods if and when we leave the EU because imports from the continent will be inevitably much more expensive. The cost of computer components is already rising steeply (up to 20%). At the moment we are still in the EU and therefore in a tariff-free zone. This will change unless a miraculous and improbable deal can be done with the EU. I expect the cost of wine and other stuff we can't adequately produce locally to rise, along with fuel. Today I looked at Thomson's prices for next year, and they are not a pretty sight.

[Linnetman]

Hello Dupnica,
It's for package staying at Romanza. Booked with Thomson.

[Jimbo]

For some reason Romanza prices seem to have gone down! Maybe it's the hill.

Anyway -the pound has dropped again. Here's what IMSFX traders say today:

"The Pound was the best performer last week following the US Election results but has since tumbled cementing its status as one of the worst performers in 2016.

Sterling tumbled, paring three days of gains after the Republican candidate became the US president-elect. Sterling was the surprise winner from Trump’s victory as concern that political tension is on the increase outside Britain relieved the pressure caused by the June vote to quit the European Union.

For the UK today it is a very light day in terms of Economic data. Teresa May will speak at the Lord Mayor’s banquet this evening."

TravelFX is 1.1453

My guess is that planning a DIY holiday this is about the rate we can expect next year.

[Papapetros]

I see Sterling tumbled today from 1.1607 to 1.1632 against the Euro.

[Jimbo]

I can't see it changing much for a long time, if ever. The next serious landmark will be the Supreme Court's judgement on the legality of the PM triggering Article 50 without the consent of our elected representatives. The weak pound is causing a quite big increase in prices in the sterling area, so disposable income will be less for many people. All a bit worrying for the holiday industry.

[Tredegar Boy]

"Our elected representatives" Jimbo had their say when they voted for the referendum in the first place. Over 500 voted in favour.

It seems to me that people only like democracy when it goes their way.

[Jimbo]

We elect our parliament. They are our representatives. That IS our democracy. To imply that the arbitrary vote of roughly half the population of Birmingham is the "true" democracy totally undermines our rule of parliament and law, it seems to me. That, essentially, is the Guy Fawkes scenario. Quoting the number of MPs who voted for the referendum simply underlines the point - there should be a vote on whatever deal is on the table, surely? That's what the law says.

I wasn't making a political point, actually. That's what will be ruled upon. It will affect the value of the pound.

[Tredegar Boy]

We elect our parliament. They are our representatives. That IS our democracy.

I thought that was the point I was making.