$1.85450 to 1 Gbp
 

Now thats a nice Xmas present, onwards and upwards. Why is it happening though and how high could it go? Not looked for weeks, months, the last time i looked it was $1.5 to 1 Gbp. So thats a hell of a jump. Good for new arrivals will make the whole experience alo more pleasureable.

Re: $1.85450 to 1 Gbp
 

It's been edging upward as the Australian economy has been looking more shaky and the UK economy less so. Last night however the US decided to turn down the volume on the 'printing money machine' and hence the currencies all took note (upshot is less money in A$).

Could see better rates still after Christmas if things progress as expected. RBA wants US$0.85

Re: $1.85450 to 1 Gbp
 

Yes many factors, as Garry says UK economy showing good signs, Aussie economy slowing mostly.

Re: $1.85450 to 1 Gbp
 

So you don't think that the main reason is the tapering of QE by the Federal Reserve?

An interesting theory

Re: $1.85450 to 1 Gbp
 

Not so long ago we were being told that the decline of the pound was because the British economy was doing badly and the Australian economy was so strong.

Now, apparently, it is all to do with the American Dollar and nothing to do with the respective economies at all:lol:

Amazing how economic theories change isn't it?:lol::rofl:

Re: $1.85450 to 1 Gbp
 

Yes I noticed that myself, the truth hurts it seems.

Re: $1.85450 to 1 Gbp
 

well see for yourself

http://www.tradingeconomics.com/char...p.png?s=wgdpuk
http://www.tradingeconomics.com/char...png?s=wgdpaust
http://www.tradingeconomics.com/char...rnygdppcapppcd
http://www.tradingeconomics.com/char...snygdppcapppcd

Re: $1.85450 to 1 Gbp
 

Oh!....I rely on BE for all my financial advice:rofl::rofl:

Re: $1.85450 to 1 Gbp
 

:whistle::whistle::whistle::whistle:

Re: $1.85450 to 1 Gbp
 

It's not complicated. For a while now the Oz dollar has been trending downwards as people considered Australia to be doing badly, and the UK/US to be doing better. That bought it to ~1.81. Then yesterday night the US finally slowed down, slightly, the QE money machine - bringing it to ~1.85. The thinking is that the effects from the GFC are finally playing out, and so the trend is back towards the 2.40:1 that's been the historical average.

That's been the trend since March of this year, really kicking into high gear mid Nov.

Its the same drivers, the same sentiment, for over 5 years now.

The only questionable bit is one of the reasons the Oz trend looks bad (besides the lack of confidence in Hockey over Swan) is the slowdown in China's demand - which suggests that another GFC might be round the corner - this time starting in China.

Re: $1.85450 to 1 Gbp
 

They are going to have to redo all those now that the exchange rate has changed so much, thats the problem when they do it in a different currency.

Re: $1.85450 to 1 Gbp
 

I was being sarcastic

Re: $1.85450 to 1 Gbp
 

I think the argument some have been making is that change in the value of the AUD is simply because that's what the RBA wants and it's just a sign of everything going to plan. In fact the RBA has been trying to talk AUD down for years without success...the market will decide the value of AUD regardless of what the RBA has to say. Even in very recent times when the RBA has been trying to talk down the dollar it has gone from a level similar to what it is today all the way back to $0.98 (and back again). Clearly GBPAUD got a big boost from UK unemployment numbers yesterday.

Re: $1.85450 to 1 Gbp
 

Can I change my haddock vote?

Oh, and can I change the haddock for a swordfish?

First rule of politics club - always call for what is going to happen anyway, it makes it look like you are in control and ahead of the game.

I'm surprised they haven't called for a 'reduced emphasis on mining', together with 'a move away from manufacturing'...

Re: $1.85450 to 1 Gbp
 

I never quite subscribe to how that is good news for new arrivals. For some yes, those who are moving permanently and bringing their life savings. What about those who are moving on a temporary basis, and need the $A as high as possible. They may have a mortgage to pay back in the UK.