Pound falls below parity with the Euro
For the first time ever the pound has fallen below parity with the euro on the high street as consumers look to exchange their pounds for euros. While the rate in the foreign currency markets is still holding above parity, the rate available to the consumer in the high Street is always below this level. The fall in the pound has alarmed many and the currency appears to be under yet more pressure in the short term.
The main reason for the fall is the fact that the UK economy is as bad as anything else in Europe and apparently one of the worst prepared economies in the world. Aside from the fact that many are predicting further falls in the economy there is no backup funding available without taking the UK into major debt as we have seen of late. Debt for the UK is set to reach £1 trillion over the next two years which is a doubling of the debt only 12 months ago.
As interest rates continued to fall this is also playing havoc with the sterling exchange rate as there is no reason for traders to buy sterling over currencies offering a higher interest rate.
Share this..
Related stories
Household bills and housing costs top family expenditure list
11/12/2013 This means that the cost of living at home has now overtaken that of travelling; with families now spending an average of £68 per week on essential household bills. Official figures from the Office for National Statistics (ONS) reveal the extent to which the cost of living has risen for families, with the amount of income spent on fuel and power up 8% from 2008 alone. There...
Read MoreOfcom leads the way with pay freezes and bonus cuts
In a surprising development it has been announced that telecoms regulator Ofcom has frozen pay levels for all staff and scrapped a number of bonuses which will save £900,000 in the coming year. The move has arisen because of negative inflation, pressure on the public sector budget and overall cost cuts across the telecoms industry. After months and months of suggesting that UK businesses should c...
Read MoreGovernment pension bill collapses
Despite the fact that the UK pension industry has never been under greater pressure than today, the UK government has announced that its plans to introduce "personal accounts" to allow those on low and middle incomes to save for their retirement will be delayed by at least four years. Initially the government had promised the scheme would be in place by April 2012 and 10 million workers would be e...
Read More1,200 bikes stolen every day, insurer claims
Around 16 per cent of cycle thefts take place in the home, Sainsbury's Bank said today.The home insurance provider made the eye-catching claim as it released new bike theft data, which was derived from claims histories dating back to 2004.According to Sainsbury's, an average of 1,208 bikes are stolen each day in the UK - with many people taking inadequate security measures to prevent the thefts.Fo...
Read MoreIs The Bank Of England Looking Too Far Ahead?
As the Bank of England continue to attack inflation and resist growing calls for interest rate reductions to kick start the economy there is a growing belief that the Bank is looking too far ahead when there is real short term danger. While it would be foolish to ignore inflation, there is a growing opinion that by affectively ignoring the economy in favour of the fight against inflation, the sho...
Read More