BBC Business currency headline

"Pound falls to lowest level since 1985". It was to be expected but they measure the rate only against the dollar-oil prices are set in dollars etc

It is not true if measured against the Euro which is still at around 1.23- 1.24 As a long term exchanger of sterling Euros it has been MUCH lower in the last several years reaching near parity at one point (I know this because it coincided with a large bill from the builder for our restoration over here) So far it is not the 10-20% drop predicted by Osborne etc.

Early days but I expected it to fall much further initially although it may continue to fall as markets come on line but depending on how we respond a steady recovery. It will be more interesting to see how the Euro pans out in the following weeks as it wont be business as usual in the Eurozone given one of the biggest partners and contributors has effectively given a no-confidence vote in the organisation.

 

We always compare to the dollar.

 

I know that (I said it in my email), but for some people the headline is a bit confusing as it implies the £ is low across all currencies. The one many will focus on is the Euro and it has not (yet) fallen by anywhere near the level predicted (in fact it recovered a bit after falling by nearly 5% ) trading at 1.23.- 1.24

 

That's because it's bad news for the Eurozone as well as for the UK.

 

I think you're not giving people enough credit. We always compare to the dollar, if people suddenly think it means the Euro then they're a bit daft. Especially as the Euro wasn't even around in 1985.

 

A very calming statement from Mark Carney just now.