Anybody got any clue whether the £/€ is going to go back to 1.5 in ther next months.?

Question

I know its hard to predict but it recently dipped to 1.46...and thats bad for me...Any chance of it going back to 1.5 in the near future?
Are there not strict limits on the upper and lower value?

Answer 1

ECB just put their rates up, UK did not.

This will cause money flow from ££ into Euro - so I would expect more demand for Euro & less for ££ and thus Euro becomes more 'expensive' (as indeed it has done).

When UK Interest rates go up, money flow may reverse again.

Answer 2

No limits at all. We left the ERM many years ago when Lamont was Chancellor and the Tories were hell bent on wrecking the economy.