How can the £ be down another 2c?
Jul 23rd 2009, 7:21 am
#1
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How can the £ be down another 2c?
The economic news today:
...and the pound falls yet another 2c against the C$.
I just don't understand FX.
- FTSE100 is at a 6 month high
- mortgage approvals are at a 15 month high
- Retail sales up 2.9% in June compared to June 08
...and the pound falls yet another 2c against the C$.
I just don't understand FX.
Jul 23rd 2009, 7:24 am
#2
C'mon already
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Re: How can the £ be down another 2c?
Jul 23rd 2009, 7:48 am
#4
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Re: How can the £ be down another 2c?
The interesting thing about your link is the quote from the chief economist at Laurentian Bank Securities Inc:
The bank’s figure of 87 U.S. cents, or about C$1.15 per U.S. dollar, “works” as an assumption, given the “currency markets move a lot,” Leitao said. He added that the loonie could be well below that level in two months time.
I'm going back to waiting, having missed buying at $1.90+ recently...
Jul 23rd 2009, 12:23 pm
#5
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Re: How can the £ be down another 2c?
Bank of Canada announced they think the recession is almost over in Canada today - that probably was a factor....
Jul 23rd 2009, 12:42 pm
#6
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Re: How can the £ be down another 2c?
Oil is up to 67 dollars a barrel which typically props up the dollar.
Jul 23rd 2009, 7:08 pm
#7
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Re: How can the £ be down another 2c?
I agree, the move is all Candian Dollar based, all the commodity currencies are very strong at the moment. Against most currencies sterling is stronger
Jul 23rd 2009, 9:11 pm
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Re: How can the £ be down another 2c?
Britain's economy shrank more than twice as fast as expected in the second quarter to register its biggest annual decline since comparable records began in 1955, official data showed on Friday.
The Office for National Statistics said GDP fell by 0.8 percent on the quarter, taking the annual decline to 5.6 percent.
The Office for National Statistics said GDP fell by 0.8 percent on the quarter, taking the annual decline to 5.6 percent.
Jul 23rd 2009, 9:40 pm
#9
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Re: How can the £ be down another 2c?
Yes... although that's the answer to the question 'why is the pound down against all currencies today', rather than my posting about the 2c drop yesterday...
Bad news all round
Bad news all round
Jul 23rd 2009, 11:38 pm
#10
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Re: How can the £ be down another 2c?
considering the state of the UK and the forecasts that say that we are going to take 5 years to recover - - maybe we are lucky that the pound is worth approx 1.75 to 1.8 $ at present.
I don't expect to see that drastically change - - only downward !!
We are just hoping things move fast so that we can get everything finalised and done before it crashes down more !!!
JET
I don't expect to see that drastically change - - only downward !!
We are just hoping things move fast so that we can get everything finalised and done before it crashes down more !!!
JET
Jul 24th 2009, 12:37 am
#11
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Re: How can the £ be down another 2c?
But only a couple of weeks ago it was back up to 1.93. It makes no sense to me how it can be so volatile.
Jul 24th 2009, 12:41 am
#12
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Re: How can the £ be down another 2c?
I'm just thankful that I changed a wedge at $1.88 
Jul 24th 2009, 4:51 am
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Re: How can the £ be down another 2c?
If I had GBP I would be hoping for lots of bad news out of the US (this will drive commodity prices down as well as cutting the general demand for CAD from ordinary cross border trading) without too much more bad news from the UK.
Jul 24th 2009, 6:34 am
#14
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Re: How can the £ be down another 2c?
U missed the most important figure that was released 9.30am today. Q2 GDP quarterly figures. The economy has shrunk -0.8% when the general consensus was -0.3%Sterling nose dived as soon as that was released
Jul 24th 2009, 6:45 am
#15
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Re: How can the £ be down another 2c?
Just spoke with Moneycorp this morning, the CAD is getting stronger as Canada is almost out of recession, we need UK economy to get better now for all us prospective immigrants 
