Scotland and the Euro

[sniper-sam]

Did I hear right earlier that the Euro rate will be affected by what's going on in Scotland?
i don't really understand things like that, and actually show, rightly or wrongly very little interest, until I suppose it directly affects me.
Which if the Euro falls then I am affected by it then.

i just don't understand why it should be....... Hopefully you guys can enlighten me.

[DS3R]

Our exhcnage rate is falling as the markets are nervous about the impact of a possible split, so it means when you buy Euros, you get less of them for your quid than you did a week ago. The same with USD.

A month ago you'd have got ~$1.68 for your quid, now you get ~$1.60. Makes little difference to Joe Public given relatively low personal spending on a holiday or business trip, but a big difference to companies with big sums needing to flow in either direction. This graph should default to a month of USD to show the slump in a convenient curve, the Euro is a little less clear thanks to their decision to bin interest rates, but you get the idea.

http://www.bbc.co.uk/news/business/m...cy/default.stm

Next Friday things may either settle and revert, or very much not with some predictions trying to grab headlines with -15% claims. We shall see.

[Seabadger]

If by the Euro level you mean the exchange rate between Sterling and the Euro, it may well be affected should Scotland go for independence in the sense that the pound would probably decline against all currencies rather than just the Euro. As above, the markets are belatedly starting to reflect this, and there may be much worse to come if they vote 'yes'.

For instance:

http://www.neweconomics.org/blog/ent...-uk-dependency

[sniper-sam]

I just don't understand why if Scotland go independant that the Euro rate would be affected. And probably no amount of explaining will make any difference, I'm rather stupid you see.
Having a second home in France does put a squeeze on our finances, so if the rate tumbles, it will not help us one little bit.

[tekbow]

Is thats whats causing that?? I keep an eye on the exchange rates for multiple currencies, as i work abroad and get paid in a number of them, and noticed the pound was down across the board the last week or so, not just against USD and EUR, but a lot of middle eastern currencies as well.

wondered why the bottom was falling out of it. tbh it actually works out better for me because i get more pounds for my dollar and riyal now, but i don't like the idea of my countries currency dipping because of this.

[gentlemenpreferhats]

If by the Euro level you mean the exchange rate between Sterling and the Euro, it may well be affected should Scotland go for independence in the sense that the pound would probably decline against all currencies rather than just the Euro. As above, the markets are belatedly starting to reflect this, and there may be much worse to come if they vote 'yes'.

For instance:

http://www.neweconomics.org/blog/ent...-uk-dependency

Never mind that- welcome back, Seabadger

[guinea]

I just don't understand why if Scotland go independant that the Euro rate would be affected. And probably no amount of explaining will make any difference, I'm rather stupid you see.
Having a second home in France does put a squeeze on our finances, so if the rate tumbles, it will not help us one little bit.

The UK is a major trading partner of the EU.

If the UK struggles, as it will if Scotland leaves, so does the EU.

A struggling EU will have a weaker currency.

It's not rocket science.

[barneygumble]

The UK is a major trading partner of the EU.

If the UK struggles, as it will if Scotland leaves, so does the EU.

A struggling EU will have a weaker currency.

It's not rocket science.

Well in this case, the uncertainty in the UK is temporarily making the Euro stronger against Sterling. Financial markets don't like uncertainty. But as has been said, it will all settle down again after the referendum.

[Enda]

It's still fairly strong. This time last year it was 0.84, now its 0.80. I'm looking at it from the other side, I get paid in euro, but have a lot of expenditure in GBP, so a weakened pound is good for me.

[JeffCansell]

Financial markets love uncertainty (it gets them HOT - because people go headless chicken mode and there's money to made).

Really is a case for "Keep Calm and Carry On" -but grab an opportunity if you see it ...

[Enda]

So this morning the pound is pretty much the strongest it's been against the euro in the last 5 years (bar a slight period in 2012).

http://www.xe.com/currencycharts/?fr...to=GBP&view=5Y

So much for me exchanging some euros into GBP on the back of the referendum.

[mtagrant]

So this morning the pound is pretty much the strongest it's been against the euro in the last 5 years (bar a slight period in 2012).

http://www.xe.com/currencycharts/?fr...to=GBP&view=5Y

So much for me exchanging some euros into GBP on the back of the referendum.

Could all change tomorrow depending on the outcome.
Looks like the markets are going with the bookies and don't believe the polls that it is so close