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Euro is "on way to parity" with £ - last one out please turn off the lights


White Horse

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Joined
Jun 13, 2006
Messages
7,064
The euro is now likely to hit parity against the pound sterling by early next year as investors borrow at low cost in the UK to buy higher yielding assets, according to BNP Paribas. The warning as come as the single currency climbs to within a sliver of 90p against the British currency. This morning it was making 89.95p in early trade.
"Sterling is likely to be the weakest currency in town followed by the U.S. dollar," analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday.
"The US dollar has been used as a funding and a reserve currency simultaneously, suggesting the US dollar will depreciate less than sterling."

fxcentre Breaking News

Good news for cheap Christmas booze to wash away those FF NAMA blues. However, parity would be devastating for employment, particularly in agriculture.
 


atlantic

Well-known member
Joined
Jan 25, 2008
Messages
649
More christmas cheer for the cross border shoppers,more cringing and whinging by our bailout government.
The euro is now likely to hit parity against the pound sterling by early next year as investors borrow at low cost in the UK to buy higher yielding assets, according to BNP Paribas. The warning as come as the single currency climbs to within a sliver of 90p against the British currency. This morning it was making 89.95p in early trade.
"Sterling is likely to be the weakest currency in town followed by the U.S. dollar," analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday.
"The US dollar has been used as a funding and a reserve currency simultaneously, suggesting the US dollar will depreciate less than sterling."

fxcentre Breaking News

Good news for cheap Christmas booze to wash away those FF NAMA blues. However, parity would be devastating for employment, particularly in agriculture.
 

Pauli

Well-known member
Joined
Sep 22, 2006
Messages
1,181
We are still only at 90P. And there will be a lot of factors influencing this as we head towards Christmas, starting with the German general election in 9 days. The dollar will have a role to play but the trend is clear enough. The booze runs to the North in December should be plentiful and expect the Tanaiste to call us traitors for taking her predessors advice to "Shop around".
 

Illustro

Active member
Joined
Jun 27, 2009
Messages
252
The euro is now likely to hit parity against the pound sterling by early next year as investors borrow at low cost in the UK to buy higher yielding assets, according to BNP Paribas. The warning as come as the single currency climbs to within a sliver of 90p against the British currency. This morning it was making 89.95p in early trade.
"Sterling is likely to be the weakest currency in town followed by the U.S. dollar," analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday.
"The US dollar has been used as a funding and a reserve currency simultaneously, suggesting the US dollar will depreciate less than sterling."

fxcentre Breaking News

Good news for cheap Christmas booze to wash away those FF NAMA blues. However, parity would be devastating for employment, particularly in agriculture.
Ah well now, you say that.....but....

I have it on good authority that all we need to do is Vote Yes to Lisbon and all of Irelands economic woes will vanish into thin air. Awaiting us on the other side is a financial Utopia of full employment and juicy bonuses. I haven't read the small print yet, but I think it has something to do with a national force field that will protect us against any exterior financial mis-haps which may happen around the globe. Prrettty clever if you ask me.

On the basis of recent polls; i've already bought a lovely new 2 door Saab for myself and a purple Lotus Elise for the wife.....both on higher
purchase/finance ;)

I know it sounds hard to believe but there's posters all over my street testifying to the fact. I kid u not.
 
Last edited:

atlantic

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Joined
Jan 25, 2008
Messages
649
Ah go now ,I think you are kiddin.
Ah well now, you say that.....but....

I have it on good authority that all we need to do is Vote Yes to Lisbon and all of Irelands economic woes will vanish into thin air. Awaiting us on the other side is a financial Utopia of full employment and juicy bonuses. I haven't read the small print yet, but I think it has something to do with a national force field that will protect us against any exterior financial mis-haps which may happen around the globe. Prrettty clever if you ask me.

On the basis of recent polls; i've already bought a lovely new 2 door Saab for myself and a purple Lotus Elise for the wife.....both on higher
purchase/finance ;)

I know it sounds hard to believe but there's posters all over my street testifying to the fact. I kid u not.
 

Nerdfest

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Joined
Sep 4, 2009
Messages
15
A strong GBP could be good for Nama given we'll soon own lots of UK property. Parity or better with GBP could mitigate some of the losses elsewhere.
 

atlantic

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Joined
Jan 25, 2008
Messages
649
No good for our exports to the UK.Will be interesting to see will retail prices for imported goods start rising in Britland.
A strong GBP could be good for Nama given we'll soon own lots of UK property. Parity or better with GBP could mitigate some of the losses elsewhere.
 

TradCat

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Joined
Jun 5, 2005
Messages
1,992
I don't drink any more so it doesn't affect me directly but if booze is the main driver of cross-border shopping then surely an excise duty cut would offset the advantage and keep spending in the state. Why not just do it?

If the booze is as cheap here people won't bother going north for the tins of biscuits.

We often here BS about Ireland Inc. but this is one example where we refuse to respond like a business and compete.
 

adamirer

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Joined
May 16, 2007
Messages
454
I wouldn't see it as the Euro doing anything, more the pound and dollar having their own issues. Long as Obama keeping printing money and the UK try to hold onto the dollar its inevitable.
 

Tigris Celtica

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Joined
Aug 26, 2009
Messages
503
If the Euro reaches parity with Sterling we are really in trouble - and our property prices will appear even more ridiculous than they already are. NAMA will be even more of a disaster.

The UK is still one of our main export markets - We haven't a hope of even maintaining our exports if the Euro rises any more. Where's the mooted recovery going to come from ? We should never have joined the Euro without the UK. The Brit Bashers might have like the idea, but it was economic madness for which we might now have to pay a very high price....
 

locke

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Joined
May 2, 2007
Messages
3,100
Regarding our exports, it depends whether we're competing against UK producers or producers from elsewhere. If the producers are elsewhere, they have the same problems as we do. Considering our generally higher costbase, I'd be surprised if their were many areas where we were competing against UK producers for the UK market anyway.

Two things that are likely to be more of a problem
- When we are competing against UK producers in 3rd party markets
- If inflation goes up in the UK leading to a rise in interest rates and suppressed demand there.
 

Tigris Celtica

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Aug 26, 2009
Messages
503
Considering our generally higher costbase, I'd be surprised if their were many areas where we were competing against UK producers for the UK market anyway.

Agricultural Products are our biggest exports the UK - And we are competing against UK Producers ! .:rolleyes:
 

Dillinger

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Joined
Nov 14, 2007
Messages
971
The euro is now likely to hit parity against the pound sterling by early next year as investors borrow at low cost in the UK to buy higher yielding assets, according to BNP Paribas. The warning as come as the single currency climbs to within a sliver of 90p against the British currency. This morning it was making 89.95p in early trade.
"Sterling is likely to be the weakest currency in town followed by the U.S. dollar," analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday.
"The US dollar has been used as a funding and a reserve currency simultaneously, suggesting the US dollar will depreciate less than sterling."

fxcentre Breaking News

Good news for cheap Christmas booze to wash away those FF NAMA blues. However, parity would be devastating for employment, particularly in agriculture.

The Irish Cartels will not be happy, they will be asking IBEC to send a strongly worded letter to Dublin.
 

locke

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Joined
May 2, 2007
Messages
3,100
Agricultural Products are our biggest exports the UK - And we are competing against UK Producers ! .:rolleyes:
But the UK can't produce enough food for itself anway, so it's going to end up importing. We're competing against other European producers and Third-World producers for the import market.

Where it could be an issue is for things like ready meals where it becomes more cost-effective to import the ingredients and make locally rather than import the whole meal.
 
A

Asi-Irish

Come shop in Pakistan for your booze! I just picked up a case of beer (20 x 500 ml bottles), a bottle and a half of whiskey and a bottle of gin for a total of 26 Euro.
 

eurosceptic

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Apr 29, 2008
Messages
83
Ah the "conventional wisdom" of joining the Euro!
 

locke

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Joined
May 2, 2007
Messages
3,100
To be honest, we're probably better off in it than out of it.

If we weren't in it, our currency would have tanked with sterling and we'd be having severe problems with our levels of external debt.

Plus, while there are drawbacks in terms of exporting to the UK, it's good news for exports to Europe and Mainland Europe now accounts for twice as much of our exports as the UK does.

I think the decision is different for the UK. When your the world's 4th (5th?) largest economy and home to its second largest financial centre, you have a lot more reasons to not be in than a country the size of Ireland.
 

Cassandra Syndrome

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Joined
Aug 23, 2009
Messages
16,908
A strengthening Euro will cripple us further. If we had our own currency we would have devalued it a long time ago and tried to export our way out if this mess.
 

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