Originally Posted by
OhOh
Originally Posted by
snakeeyes
If England leaves you will end up getting 36 baht for your £1
Based on whose calculations?
Britain backs Brexit - and it could make trips to Europe MUCH more expensive
UBS said it forecast a 'sharp correction' to 'parity' after a Brexit vote
But if Britain votes to stay In, the pound would be expected to strengthen
The Swiss bank warned there was a 40% chance Britain would quit the EU
The cost of going to Europe on holiday could soar after a Brexit vote, a top bank warned today.
UBS forecast a 'sharp correction' in the currency markets if Britain votes to leave the EU - a move which could make the pound worth about the same as the euro.
Such an adjustment could make travelling in the eurozone more expensive within hours of the result being declared as markets will open as normal.
A weaker pound in Europe would start making things more expensive for British travellers quickly.
It means both that the pound in travellers' pockets buys less while in the eurozone and damages the overall conversion rate when buying holidays outright.
UBS analyst John Wraith said the pound was already drifting toward the value of the euro because of lingering uncertaintyy - pointing out one euro is currently worth about 78p and forecasting it will hit about 84p by the referendum date.
And Mr Wraith warned today: 'We estimate the exchange rate level that would accommodate a sharp correction in the UK's current account deficit and find that EUR/GBP could go to parity.'
The bank estimates there is about a 60 per cent chance Britain will vote to stay in the EU, after studying opinion polls.
If this happened, Mr Wraith said he would expect the pound and euro to drift back to the level where it was for much of last year
Mr Wraith said: 'We think that EUR/GBP should revert to the 0.73 level, near which it spent most of last year.
'In our view, the largest part of the weakness in sterling since November can be attributed to increased concern over the possibility of exit from the EU.'
James McGrory, chief campaign spokesman, said: 'Yet again independent experts have found that leaving Europe would hit Brits where it hurts – in the pocket, with higher prices and the pound taking a pounding.
'Britain's EU membership means Brits pay less doing their shopping and booking their holiday abroad.
'While the Leave campaigns refuse to say what Out would look like, the only consequences we can bank on are increased financial risk and insecurity. Leaving is a risk we simply can't afford to take.'