Value of the Euro: Why isn't it Going Down?

[Le Pop]

Can somebody who understands this stuff explain to me why the Euro remains around 1.14 to the pound when there are all these fears about the Euro and the 'disaster' about to happen in Euroland, and the pound is supposedly under an 'approved' austerity plan in the UK?

I don't understand...

[ringram]

There is your answer. Well sort of.
Also ECB is hardcore on inflation so the value of the currency is more stable than UK or US where inflation is higher.

[zac510]

Currency pairs are ratios and all of these countries are in as bad economic state as each another

[DPX]

There is huge money in Europe ( euro ) , it can also work its way out of the hole
If the big EU gets its finger out it can ( i feel ) sort this out as they are seen as the bad guus full stop
and if they upset anyone who cares , the have upset most people allready.

The Euro is now far to big to ignore , and it is at least 20 percent up on the pound since it started

A lot of things now cost the same in the EU as the UK no huge price difs, So perhaps this is the correct rate

It is hard to ignore the size of France and Germany combined , and lets face it Germany is still sorting out the old GDR which I feel was in a much worse state than the pigs

[davepoth]

The USD, EUR and GBP are all falling at a roughly equal rate against certain other economies, but generally since everybody is equally in the st they stay roughly level.

[Chris_]

davepoth said:

The USD, EUR and GBP are all falling at a roughly equal rate against certain other economies, but generally since everybody is equally in the st they stay roughly level.

This ^^

The market thinks that Sterling is no better prospect than the euro at the moment