caliburn

Its consensus and its bound to happen.... just a matter of few months when this insanely overvalued AUD will return to a more normal level.

http://www.bloomberg.com/apps/news?p...d=abm4uZnTI4z0

I will hold on to my money for now.

IndieG

Good strategy....

Ianevs

Wow if this is their forecast we should all short the dollar seems like a one horse race!!!!

Mr Grumpy

It doesnt mean you will get more $ for the GBP. This is all about US$ to AUS$. Britain's economy is still shit and the British pound is on its way to permanent unimportance.

Historically the Aussie has gone dramatically up and down against the US$ and will continue to do so. The British pound however is dying and is not likely to change

Lord_Farquar

Did you read that in the Daily Fail?

koalakim

Would be nice to think it would help the pound but just as Britain recovers after the snow they get the fall out of volcanic ash.

If this volcano thing rumbles on on on (excuse the pun) then the British economy and parts of the European economy - well I just hate to think what will happen.

There is rotting fruit in Africa waiting to come over, people can't export, import at the rate this is going Brits will be lucky to see a banana for a few weeks! This means businesses already hard hit will find it very difficult to survive, lets just hope because it is an act of nature that everyone will pull together and try and work out things.

We also have no clear leader for the election, from what I've been hearing Clegg seems to be quite good but will enough people vote Liberal to get them in? If there is a hung parliament then don't expect any help for the pound.

I'm now wondering if the pound is still around 1.65 which it was yesterday about cutting my losses and just bringing what I have left over, at least it will earn a bit of interest here!

Mr Grumpy

No, but its a fact. All of Europe is declining, Asia and Latin America will soon replace them in terms of consumer demand.

Lord_Farquar

I think to say the British pound is dying is a tad melodramatic.

mulben

Not a lot to hang out for

Mipik

Is it only me thinking that a much weaker dollar would be a good thing for Australian economy?

Mr Grumpy

Maybe, but the days of the British Pound being a top global player are coming to an end. There will be economic repositioning for the next decade and many big shots that exist now like the UK, France and even Japan to an extent will see substantial permanent decline, it will eventually plateau but it will be a big fall.

Amazulu

In forex nothing is certain - if it was we would all be billionaires.
GBP was overvalued for many, many years - AUD has only been so for a short period of time.

Amazulu

This call has been made many times in history and it still has not happened.

I see no difference now.

coolshadows

The GBP has been devalued by the Bank of England, that is why it has dropped as much as it has. Only when they start reversing quantitative easing will it fully recover.

Vash the Stampede

No, I'm thinking it too. Our primary producers would be delighted by a weak dollar. I can't imagine how they're trying to shift exports these days.