Really fucked off with Euro exchange rate

[GrumpyOldBag]

We have been going on holiday self-catering to the same place in Europe for over 10 years.

This year everything feels prohibitively expensive - to the point where it is really inhibiting what we can choose to do.

We are here for 2 weeks and it's really hard as family of 4 (with 2 teenagers) to spend less than £100/euros a day on activities/eating out.

Not in a beach resort type place, so taking a picnic to the beach for the day isn't an option - nearly everything there is to do here costs money. 3 euros for a coffee, 3 for an ice-cream - it all quickly adds up. Even the 'cheap' food in the supermarket is expensive. Practically at parity with £.

Bloody Brexit!

Why is it going to bounce back?

And pmsl at the budgeting thing. Yes my parents stocked up on Euros but they are significantly richer than us. Your average man on the street can't do that.

www.economicshelp.org/blog/135/economics/falling-value-of-pound-sterling/

If anything surely it's going to get worse.

I was going to buy a wodge of Euros before the referendum but thought it disloyal.... Ah well....

We went to Croatia in 2015, didn't find it especially cheap. France is not, hasn't ever been ( in my lifetime) and never will be a cheap holiday destination ( tho neither is Cornwall IMO). The cheapest holidays have been

1. southern Spain
2. southern Italy
3. Greece In these places even with a 1:1 exchange rate things were much, much cheaper.

Good link ironing from June 2016. However most of these things have already happened so difficult to see why exchange rate would continue to decline.

Uncertainty is likely to start to reduce as Brexit negotiations proceed. So far inward investment has not fallen although there is a risk it could although there is an equal chance that UK based investment would compensate. Agreed there will likely be some decrease in Eurotrading in London but since this is in Euro I am not sure this impacts the exchange rate? The UK current account deficit is falling as % of GDP.

Going forward BoE talking about unwinding QE and raising interest rates. House price increases have not led to increasing interest rates and so the converse is also not the case. Unless there is accelerating inflation no reason to suppose declining ppp. If anything the expense of Europe as demonstrated by this thread is highlighting the opposite.

Short term sterling may well decline a bit more against the dollar if, as seems likely, the US raises interest rates before the UK but continuing decline against the Euro looks less likely.

Tired the 2008 crash affected all economies equally, although the impact on the UK was quicker but so was the bounce back so the £ was undervalued in 2008/09 and then overvalued for most of the period up to 2016 relative to the Euro.

Will be interesting to see what happens post the German elections in the Autumn.

mairead

We were going to Florida in the August following the referendum

Dh woke up about 3am and went down to watch the news, when he saw the way he was goiing he bought the dollars

He got them at 1.46, friend of ours going at the same time left it til the following few days, when it was 1.26

Still

Havent been to italy but would certainly agree with the spain comment

I think spain has always been a popular destination even for people on a fairly low income because it was always so cheap

Its obviously got more expensive over the years

We couldn't afford to holiday in EU this year, so went to Skye, Scotland where virtually everybody has put their prices up because they know that Europeans can afford it.

At least we've a choice. So talking to a local fisherman there who explained that if there was an import tax on British goods to Europe it would decimate what is left of Skye because nearly all their shellfish is sold to EU countries e.g. Spain where he was selling his Lobsters, etc. He also said that only five people on the whole Isle voted for Brexit!

DH's company has to buy raw materials from EU before they can even think of exporting. If there is a hard Brexit it could close the business! Our only hope is a soft Brexit, especially if we wish to holiday in Europe in the future..

I don't think we are in a position to play hardball with countries that collectively have the UK's balls in their tight-fisted hands!?

Well first of all, this is good for exports...we export Machinery &Computers. 60.3 BILLION, Cars 51 BILLION, pharmaceuticals 32 BILLION, Gems and Precious metals 27 BILLION, Electrical manufacturing Machinery 27 Billion, Oil &Petrol 36 BILLION. And and and. France, Italy, Greece and Spains economy is way behind ours. Europe is a mess. Apart from "I'm alright Germany" the tourist EU Countries need us or they would collapse. I am a UK ex pat and I know for a fact it is still cheaper here than the UK unless you visit Cities like Barcelona, Madrid etc. Malaga is expensive because of the type of tourists it attracts, but Benidorm, San Juan, Torrevejca, Guadamar are still dirt cheap especially if you eat in Spanish restaurants. Yes my income has drastically gone down, but I still have a good life style that I could not afford in the UK. I obviously voted to stay in with Brexit, but unlike some I believe in Democracy and accept we are going through a period of transition. If only people would talk up the UK instead of continually moaning we would become the Country we once were. In my opinion this is short term pain for long term gain, as long as May and her Government gets her finger out. To all those people who cannot see that negativity doesn't work, I suggest they immigrate to some where like Africa, Afganistan, Irac then they really would have something to moan about.

Orlantina.......Europe put in tougher checks because of Terrorism and it applied to everyone. They need our tourism or they will collapse.

With virtually our entire families in Ireland we have no choice but to travel home a couple of times a year - that week at Christmas is going to be financial agony this year!

Ironingmountain......ffs not EVERY TORY IS RICH.

I don't want to be the country we once were - I want a dynamic, forward thinking UK.

Prices here are going up - particularly for food items - because we're a net importer.

2 major firms have reported big downturns in receipts (Wilkinsons, Laura Ashley) citing Brexit as the cause.

Sterling falling is not good for most people in the UK - and not only when it comes to holidaying abroad.

Your more general points about long-term gain, and only holiday-shopping pain don't really hold up, either.

Complex industries, such as the car industry, require effective trade agreements in order to function and trade (those parts are bought in from elsewhere) and currently none of those post-Brexit trade agreements is in place.

One of our biggest generators of income for the UK is the financial sector - it's threatened by Brexit.

I don't really want to go and live in a cheap little village in Spain, or wherever. I want to live in the UK, with a thriving economy, a future-directed outlook, and a vibrant, world-level (and enviable) culture. I am devastated that Brexit is devastating the UK and am very bitter about the people who voted to give the UK a hammering. Especially those who, secretly, prefer to live tiny little, backward-looking, lives and want to drag us all down to their narrow, small level.

I see that I basically x-posted with crazycatguy.

I'll add that I find it odd that the people who accuse me of "talking my country down" tend to be the ones who seem to hate everything about the UK.

How do you mean ' the country we once were'?

What are the long term gains you anticipate?

I dont get talking the country down bit

As far as i know the British have complained about britain for centuries

Doesnt seem to have made a difference

Although i suppose it would explain the demise of many a medieval king

And the whole war of the roses thing

Has to be a parody.

Steve Coogan trying out a character for the new series maybe?

I live in Ireland and just booked my Disneyland Paris hotel directly with Disney but requested the Stg£ price rather than the €.
They obviously set them ages ago because it was a third less.

inniu

What?

We booked ours a week or two ago...i think we have the £ price

How do you find out the difference