Genesis

The pound's a load of old bollocks again. I am surprised there is so little interest in this subject for those with some GBPs. I can't be the only one who is stuck with some!! I wonder if 2 for 1 is as good as it will get for eons?

chocolate cake

Yeah, agree it's going the wrong way again.

There seems little reason, for a few weeks the news out of UK wasn't too hot but the GBP v NZ improved. Now we have NZ govt woefully under estimating the cost of the christchurch insurance claims and little other good news, yet the NZ$ gains ground.

You're not the only one stuck with GBPs don't worry! I don't see any hope of returning to the $2.50's and above, but there's little data to support a long term rate below $2 either. It's killing exporters and tourists come in less frequency and spend less $'s (except for the Aussies), especially with rip off prices around RWC.

Genesis

I just don't know how NZ is staying above water at the current forex rate. The govt is quite clearly NOT going to take any action..it must be utterly killing the exporters eh? I know Racon are suffering hugely. We just ordered a load of trains out of China because its so much cheaper to buy them there because of forex rates. That means a whole lot of kiwis will lose there jobs as the NZ train maker was relying on that order. So its shit all round. The only people this benefits is those going abroad and a bit of relief on imports. Cheap flat screen TVs..well worth all the crap!!!

johnht

According to my weekly forex newsletter from last week, if Ben Bernanke of the Fed reserve announced more QE at the big meeting last Friday then the stock markets would rally and the pound:NZdollar would go down.
So he didn't announce any more QE and the stock markets rallied and the pound:NZdollar went down.

John.

Genesis

I don't understand it either. I thought the kiwi $$ would have gone down arvo QE3 was deferred simply because it means the US $ should have gained from ground as most of us understand the more they print the more the currency devalues. Its all a complete mystery to me. And then the pound rallied really well in the midst of the rioting.....you would have thought there would have been immediate and BIG negative sentiment towards the GBP at that juncture. Should have taken 2.03 when I could have. And another thing you would have thought the kiwi would have taken a roght kicking arvo the EQ..not so.

DC10

If Bernanke introduced QE3 then the USD would fall and NZD would rise against it (and probably Sterling also, because US and UK economies are in a similar bind)

The markets have decided that there might well be QE3 soon. Bernanke's main announcement was that the Fed committee would take an extra day to consider the situation at their Sept meeting.