The pound will turn
A friend is just back from a long weekend in Paris. He’s still in shock. Why? The cost.
He paid €16 (£14.88) for a “not terribly good” Caesar salad outside a museum. He paid €7.50 (£6.90) to get into a not-very-interesting exhibition. Most upsetting of all, he paid €16 for a starter of new season funghi at a local brasserie, when, he says, he can get girolles on toast for just £6 at his local (very smart local) in Notting Hill.
What all this tells him (as a one-time hedge-fund manager) is that the pound is too cheap and the euro too expensive. This isn’t a popular view right now: the pound is at a five-month low against the dollar and is widely expected to hit – then slip below – parity with the euro any day now. But it might just be the right one.
• Read the full editor’s letter here: The pound will turn