That European summer holiday is getting more expensive. Since the summer of last year, sterling has depreciated by over 16 percent against the euro.Foreign investors are losing confidence in the UK. Unfortunately, we have collectively given them plenty of reasons to sell off sterling; we have a massive current account deficit, the housing market is collapsing; and our banks are teetering on the edge of insolvency.
Anyone for another interest rate cut? If the Bank of England slips in a few more over the coming months, sterling might reach parity with the euro by August bank holiday.
3 comments:
I have a sinking feeling.
Confidence in the Euro is overrated. Sure it's stronger than the pound but how long do they think it can survive the Irish, Spanish and Italian collapses. Before long the Germans will be fighting everybody else and something has to give.
I don't like pounds, but now is a terrible time to get into gold or Euros. It's a sad feeling to find the pier when the boat has already set sail.
Nick
I've been saying this for the last 3 years or more. The PTB will hammer the GBP to less than parity with the euro, and the sheeple will be crying out to join the euro to bring about some semblance of financial stability.
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