Exchange rate of Euro

TallGlass

Is anyone else concerned about the rate of the Euro to the Pound at the moment.

According to Google

20 Euro equals 14.77 British Pound

And it also looks from the graph that the Euro is at its worst in four years against the pound.

My concern apart from this been bad for Ireland considering we deal so much with the UK, Irish businesses selling to the UK and there transactions. If the Euro is doing so bad against the pound, is the Euro really recovering much at all. This to me shows we are still in real trouble here and the goverment are only on some sort of election campaign for the next GE and we are still up **** creek with the rest of the EU.

On the flip side looking at things the USD also looks weak against the GBP and the EUR is slightly up on the USD at 20=22 USD.

So basically, when all was good EUR was stronger against both by alot, yet one has gained massively and the EUR is at a loss and the other is nearly evens against the EUR, yet we are told we have recovered

dxhound2005

TallGlass wrote: »

Is anyone else concerned about the rate of the Euro to the Pound at the moment.

According to Google



And it also looks from the graph that the Euro is at its worst in four years against the pound.

My concern apart from this been bad for Ireland considering we deal so much with the UK, Irish businesses selling to the UK and there transactions. If the Euro is doing so bad against the pound, is the Euro really recovering much at all. This to me shows we are still in real trouble here and the goverment are only on some sort of election campaign for the next GE and we are still up **** creek with the rest of the EU.

On the flip side looking at things the USD also looks weak against the GBP and the EUR is slightly up on the USD at 20=22 USD.

So basically, when all was good EUR was stronger against both by alot, yet one has gained massively and the EUR is at a loss and the other is nearly evens against the EUR, yet we are told we have recovered

Exchange rates fluctuate all the time. For all of 2005 the rate was below 70 pence, it is 74 pence today. It has been as low as 65 pence and as high as near parity. Winners and losers all round over the years if you want to regard it in that light.

Those in the know expect Sterling to weaken against the Euro in the coming weeks, depending on the outcome of the elections in the UK.

TallGlass

dxhound2005 wrote: »

Exchange rates fluctuate all the time. For all of 2005 the rate was below 70 pence, it is 74 pence today. It has been as low as 65 pence and as high as near parity. Winners and losers all round over the years if you want to regard it in that light.

Those in the know expect Sterling to weaken against the Euro in the coming weeks, depending on the outcome of the elections in the UK.

I understand, usually its not for long it would be so low and rise/drop sharply but its seems to be a steady low for the last while. Usually I shop alot on Amazon but for two months now I have been turned off it as its just so expensive, literally more expensive than to buy here in Ireland. Then add in all this talk of Ireland recovering, the EU recovering and then the UK wanted to leave the EU, its making me wonder if there is another storm brewing. I can't imagine Ireland can be the ones to draw the short straw again and take the brunt of an EU financial fall out.

stimpson

It's good for Ireland as it makes our exports cheaper.

BoJack Horseman

TallGlass wrote: »

I understand, usually its not for long it would be so low and rise/drop sharply but its seems to be a steady low for the last while. Usually I shop alot on Amazon but for two months now I have been turned off it as its just so expensive, literally more expensive than to buy here in Ireland. Then add in all this talk of Ireland recovering, the EU recovering and then the UK wanted to leave the EU, its making me wonder if there is another storm brewing. I can't imagine Ireland can be the ones to draw the short straw again and take the brunt of an EU financial fall out.

QE was supposed to devalue the Euro.

None of this is accidental & its good for Ireland.

Washington Irving

Pain in the hole buying off Amazon these days

Slydice

Seriously? On After hours?


It's great for Irish exporters. If the euro is cheap, UK and US companies will be able to buy more of our stuff.

Overall, dollar and pound look similar enough compared against the euro over the last 5 years:
USD: http://www.xe.com/currencycharts/?from=USD&to=EUR&view=5Y
GPB: http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=5Y

Obviously it's crap for getting some californian champers and skiing trip to the rockies OMG...

dxhound2005

TallGlass wrote: »

I understand, usually its not for long it would be so low and rise/drop sharply but its seems to be a steady low for the last while. Usually I shop alot on Amazon but for two months now I have been turned off it as its just so expensive, literally more expensive than to buy here in Ireland. Then add in all this talk of Ireland recovering, the EU recovering and then the UK wanted to leave the EU, its making me wonder if there is another storm brewing. I can't imagine Ireland can be the ones to draw the short straw again and take the brunt of an EU financial fall out.

Not true. From the Euro started in 1999 until the end of 2008 it was worth less against Sterling, sometimes significantly less than it is today. You could say things have returned to their natural order.

http://www.freecurrencyrates.com/exchange-rate-history/GBP-EUR/1999

KingBrian2

It is great for our goods but bad for quality. We don't want cheap goods being tossed to foreign customers, some might be alright with that but Ireland needs to be selling quality goods or services. That is the important detail. Made in Ireland should always be valuable.

KomradeBishop

As said above, look at the Amazon.fr and .de plus other EU Amazon sites, and compare prices to the UK one; often can get things cheaper.

The effects of QE and drop in exchange rate of the Euro, has avoided Europe falling into deflation - but likely only for a year and a half or so before the benefits diminish - so this is not a 'true' recovery, and we'll likely be heading into economic turmoil again within 2 years (or much sooner, depending on Greece).

This could all be avoided though, and a true recovery achieved, if Europe engage in some kind of 'New Deal' type program of enormously boosted EU-wide public spending (perfect time for it really, given interest rates are at historical lows) - but politically, this just won't happen, because of how dysfunctional Europe is, so yes, plenty of storms ahead (we're still barely halfway through the last one from 2007-8 really, it may last decades).

We may see, in the coming years, 'currency wars' - where different currencies try to competitively devalue relative to one another; I don't know if the UK/sterling is likely to participate in this though, but if it does, we'd see the exchange rates go the other way again.

kneemos

sugarman wrote: »

Why not just use amazon.de or fr or es etc???

Already in euro, and nearly always cheaper than .co.uk anyway.

Granted shipping times are longer, and some items won't ship to Ireland, but still..

Can you change the language?

Victor

KingBrian2 wrote: »

It is great for our goods but bad for quality.

Eh, no.

If a worker gets paid €10 an hour today and €10 an hour tomorrow, well, then the difference in the rate of pay (nil) is going to be hte same as the difference in the quality of the goods (nil).

ytpe2r5bxkn0c1

OP you seem to not understand basic economics. The exchange rate at present was manipulated by policies precisely because it suits us to have them this way right now. Good news for exports and stimulates the economy within the euro zone.

BoJack Horseman

kneemos wrote: »

Can you change the language?

Browse via Google Chrome browser & it will translate every page.

Santa Cruz

Keenan Delicious Cue wrote: »

OP you seem to not understand basic economics. The exchange rate at present was manipulated by policies precisely because it suits us to have them this way right now. Good news for exports and stimulates the economy within the euro zone.

Wharrabow if yewer goin to see Unira?

Victor

Santa Cruz wrote: »

Wharrabow if yewer goin to see Unira?

We / you can't afford for you to be spending your money on such frivolities.

UCDVet

Keenan Delicious Cue wrote: »

OP you seem to not understand basic economics. The exchange rate at present was manipulated by policies precisely because it suits us to have them this way right now. Good news for exports and stimulates the economy within the euro zone.

A lot of times what is good for 'everyone' (or more specifically the people controlling the ECB) might not be good for all of the individuals. A lot of people will be/have been screwed over by their choice.

Notorious97

One it stays at least above one for one with USD I don't care, going to US in three weeks so do not want it falling any lower.

I understand about exports, but seriously I don't care until I am home,

ytpe2r5bxkn0c1

UCDVet wrote: »

A lot of times what is good for 'everyone' (or more specifically the people controlling the ECB) might not be good for all of the individuals. A lot of people will be/have been screwed over by their choice.

It's not about individuals. It's about the economy as a whole. Tough if an individual has to pay more to buy online from a non euro zone source.
Personally, I'm quite happy with the affect the current exchange rate is having - increased exports, reduced imports, increased employment, deflation halted...

tritium

kneemos wrote: »

Can you change the language?

Use chrome on android and it will translate (not sure about chrome on windows but I suspect it might)

Zebra3

Exchange rate with the Colombian peso causing OMGs galore for our celebs.

Umekichi

I understand why it had to be done, but it annoys me since I do a lot of buying online of stuff that I can't find here(certain books, stuff for the house etc), add into the fact that I am going for a 4 day break to visit friends in England, I am rightly ticked off. At the same time I am enjoying the feck out of the yen's drop against the euro. Now if only the yuan could lower a bit more that would be great!

Nulty

Zebra3 wrote: »

Exchange rate with the Colombian peso causing OMGs galore for our celebs.

You think anything worth buying from Colombia is bought with local currency?

Victor

Notorious97 wrote: »

One it stays at least above one for one with USD I don't care, going to US in three weeks so do not want it falling any lower.

In the short-term, expect the Euro to continue falling against most currencies.

If you want certainty and the current rates, buy now.

Massimo Cassagrande

I started a thread on this in the Politics Cafe, and it seems it is a good thing. Yay.

Fecks my "buy stuff in the UK to sell in Ireland" cunning plan right up the chuff tho tbh. But apparently it is good. So carry on..I'll sit here and sulk.

rainbow kirby

I'm paid in GBP, have a wedding to pay for in euro and am honeymooning in the US. I'm quite happy at the moment tbh! :pac:

Streetwalker

As an importer it's killing me at the moment.

Sucks for holidays

m5ex9oqjawdg2i

Oooh, it's a good thing for share

Victor

Kelvin Small Veal wrote: »

Oooh, it's a good thing for share

If you mean shares in businesses, it is a mixed bunch. Inflation and interest rates will no longer be at zero, which means there may be a reduction in demand for shares and an increase in demand for financial products.

thebostoncrab

I've seen online ticket sales to UK customers jump by over 400% in work for April, which is traditional a very quiet month for us, so honestly the exchange rate at the moment is great

kneemos

BoJack Horseman wrote: »

Browse via Google Chrome browser & it will translate every page.

The German site is definitely a lot cheaper and free postage as well on the few bits I was looking at.

UCDVet

Keenan Delicious Cue wrote: »

It's not about individuals. It's about the economy as a whole. Tough if an individual has to pay more to buy online from a non euro zone source.
Personally, I'm quite happy with the affect the current exchange rate is having - increased exports, reduced imports, increased employment, deflation halted...

Sure.

But anyone who enjoys imported products, including the near endless list of things that simply aren't made here, they'll be expecting to pay a lot more.

And anyone with a relatively skilled profession is going to realize they'd make a lot more money somewhere else. Why work and pay taxes in Ireland when I can go somewhere else and make a lot more money? If you were a doctor looking to migrate somewhere, you can pretty much go anywhere you want in the world - the world needs doctors....when you compare median salaries and you see how much less you'd be able to buy if you went to the EU......odds are, you'll just go somewhere else.

Ireland imports more from the UK than it exports. You don't need to be a maths expert to see that might not work in our favour.

I'm not saying it's a bad choice, but I am saying a LOT of people will be negatively affected by it. Sure, it's likely to reduce unemployment and it seems like we've seen that, but we've effectively lowered minimum wage. We'll have more people working, but they're getting paid less. And cost of living will go up. If you were unemployed and land a job - good for you. If you were making minimum wage, probably not so good. If you owe a lot of money, probably good for you. Inflation will come along and devalue your debt. If you have some savings, probably not good for you. The money you had just lost ~20 of it's value.

Victor

UCDVet wrote: »

But anyone who enjoys imported products, including the near endless list of things that simply aren't made here, they'll be expecting to pay a lot more.

That's the idea. They want to discourage those imports.

And anyone with a relatively skilled profession is going to realize they'd make a lot more money somewhere else.

But their cost of living would be higher in that place also.

I'm not saying it's a bad choice, but I am saying a LOT of people will be negatively affected by it. Sure, it's likely to reduce unemployment and it seems like we've seen that, but we've effectively lowered minimum wage.

And employers will be able to employ more people. All incomes will be reduced (if measured in foreign currency terms).

Importantly, it also the cost of living will also be lowered - because we will pay our colleagues less - whether in wages or the price we pay for goods and services.

UCDVet

Victor wrote: »

That's the idea. They want to discourage those imports.

But their cost of living would be higher in that place also.

And employers will be able to employ more people. All incomes will be reduced (if measured in foreign currency terms).

Importantly, it also the cost of living will also be lowered - because we will pay our colleagues less - whether in wages or the price we pay for goods and services.

Discouraging imports is great for the guy selling things locally. It's bad for the consumer who wants to buy stuff. I like electronics - not a lot of locally produced PS4 alternatives, unfortunately.

The cost of living will be higher yes. But for anyone earning a reasonable wage, that is to say, anyone who is *saving* money each month, they're taking a pay cut. If the euro is 1.38 USD and I'm saving 500 euro per month, and the euro drops to 1.00 USD - I'm still saving 500 euro per month. The cost of living went down, but it doesn't benefit me. My 500 euro I save each month is worth less than it was before. If the euro went to 2.00 USD - the cost of living would skyrocket, but so would my pay and I'd still have 500 euro extra to save each month.

Of course, that's an oversimplification - because when the euro goes down, my pay goes down and my cost of living goes down - but only the local cost of living. My rent goes down, sure. But the petrol we put in our cars - it doesn't drop when the euro does. All the things we import from the UK doesn't get cheaper. Really, anything produced outside of the EU or requiring parts/materials/resources produced outside of the EU will go up. A lot of the food I buy originates outside of the EU. A lot of the electronics (if not nearly all) originate outside of the EU. So, instead of saving 500 euro, now I'm saving 450 and that 450 is worth 20% less than 450 euro was worth a year ago.

Again, I'm not saying it's a bad thing; but it's certainly bad for a lot of people in Ireland. Probably not the majority, but certainly it will negatively affect a lot of people. Our pay in IPhones per month is dropping pretty hard. A lot of workers who might have otherwise migrated to Ireland are going to go other places (and there are a lot of industries we have labour shortages in). A lot of skilled Irish workers are going to look up the numbers and say, 'Well, I might not have otherwise, but if I went and worked in X - my disposable income would be a lot higher/I could buy a lot more'.

One of my Irish co-workers left recently and he did cite the EUR as one of his reasons for doing so. Maybe it's only a contributing factor, but he did leave the country.