Tuesday, July 16

Pound could be worth the SAME as the euro by next summer



UK holidaymakers hoping for a break in Europe could be hit hard in the pocket next year with experts predicting the pound and euro will cost the SAME.

Currency experts warn that the pound could reach parity with the euro next year – spiking the price of a European break.

Sterling fell 0.68% today to fresh five-year lows against the euro at 1.137, its lowest since October 2011.

This compares to more than 1.30 euros to the pound prior to the Brexit vote in June.

Now there has been a warning that by 2017 the pound could be worth the same as the euro.

According to the Daily Post It would mean more expensive European trips for Uk holidaymakers but could boost the tourism industry in North Wales by making Britain cheaper for foreign travellers.

John Wraith, head of UK rates strategy at UBS, warned that the pound could suffer a fate similar to that during the financial crisis.

He said: “When the global financial crisis entered its acute phase, sterling resumed its rapid decline, falling a further 20% by the end of 2008.

Although different in its underlying causes, a similar pattern of decline, pause, and fresh falls may be unfolding now.

We reiterate our forecasts for the end of 2017 of 1.20 dollars for GBP/USD, and 1.00 for EUR/GBP.