Last Month I picked out a prediction about the pound hitting parity with the Euro, because I was shocked to read it.
Today I found a similar doomy outlook from Jane Foley, Research Director, Forex.com, written a couple of weeks ago:
"the recent rapid drop in the value of the pound has raised speculation that euro-sterling could see parity again in the not too distant future"
(Source: City A.M)
Today's rate is 1.0643 -
That is not far off parity. Only Two years ago, in October 2007, the rate was 1.4367.
Then your Euro cost you about 70p. Taking a hit of 30 pence in every pound has certainly changed my plans to travel abroad. Has it affected yours?
I am not good at figuring this data, but it seems to me that apart from the visible hikes in taxation, we are faced with eye-watering "taxes" on travel abroad, due to the weak pound, which is after all, deliberately weakened by fiscal policy.
Perhaps an economist can enlighten us.