1.26 and falling
 

AED 4.65 to the £

How low can it go?

1.22 is 4.5
1.08 is AED 4 to the £ !!!!!

Re: 1.26 and falling
 

I'm wondering the same - especially as the 1.25 was suppose to be the support point.

Re: 1.26 and falling
 

The market is looking for, and will sell it down to 1.20.

That's a 20% drop from the 1.50 it was on the morning of Brexit !

Re: 1.26 and falling
 

It's a bit scary for those of us paid in GBP.

I'm not worried though. It'll come back. Sterling is the bargain of the century. Sell dollars buy pounds Mr Soros.

Re: 1.26 and falling
 

No chance.
They will push this as close to parity as they can

you will see 1:1 before you see 1.50

Re: 1.26 and falling
 

From Zerohedge:

As reported moments ago, just around 7:07pm ET, cable snapped and plunged by what some say may have been as much as 1200 pips, dropping from 1.26 to as low as 1.14 according to some brokers, before snapping back up.

Re: 1.26 and falling
 

I accepted the UAE job offer at approximately 5.8 to the pound.

It's now down to 4.56 to the pound.

Let's put this way, I've effectively had a massive salary increase in the past year ;)

Re: 1.26 and falling
 

was approx 6 to the pound when I moved here. Just wish I could pay my rent here in sterling.

Re: 1.26 and falling
 

The race to the bottom is on it seems.

1.23 in current rate (ignoring the overnight flash shock).

Poor folks in the UK - they are going to get an inflation shock just after Christmas.

Re: 1.26 and falling
 

The Flash crash showed there is very little support below.

Straight through 1.25 and doesn't seem to be any at 1.20 either.

It's not just about the £ though. $ is ridiculously strong against everything.

Re: 1.26 and falling
 

Gizza job...;)

Re: 1.26 and falling
 

keep on dropping!!

Re: 1.26 and falling
 

Without any positive political announcements (on trade deals and market access), I fear the £ will continue stumbling. Which is of course terrible for the UK residents, and for UK assets. How bad to we think the impact [inflation] will get?

For those of us earning in Dollar/pegged and planing to eventually repatriate this is a good boost to our remittances. But should we hold off, as it doesn't seem to have bottomed?

My personal view is that £ will take 2 decades to recover, if the current political situation endures!

Re: 1.26 and falling
 

The £ dropped pretty low in '84 / '85 but recovered quickly enough.

Who really knows. I don't think anyone does. The swings in the pound's value is due to human irrationality as much as it does with market fundamentals. My guess is that the recent sharp drop is due to the realisation that Brexit is definitely going to happen, the Government is committed to it, and when the market comes to terms with it there will be stabilisation and some increase. We're still in the EU and will be for the next two years, after all....

Re: 1.26 and falling
 

20 years!!! more like 2 years.

Re: 1.26 and falling
 

As mentioned above by DXBtoDOH, the whole brexit process will take 2 years. I can't see the £ recovering during that, especially if it is the shamble that I have come to expect from UK politics.

My own forecast is based on the Brexit negotiation resulting in contracted exports from the UK and a stagnate workforce/immigration. Perhaps 2 decades is far-fetched, and I can't claim any qualification on the matter. But then again it is sentiment that decides markets....

Re: 1.26 and falling
 

Agreed, but we all have our estimates.

Re: 1.26 and falling
 

Or in the case of this weekend, algorithyms decide markets :unsure:

Re: 1.26 and falling
 

Most countries crave a weak currency. The Brits obsession with the strong pound is the main issue.

A weak currency would solve a lot of the UKs problems.

Viva la Industrial Revolution 2

Re: 1.26 and falling
 

Yeah, all all the "bloody foreigners" will leave cause they aint making nah monezy"

Re: 1.26 and falling
 

Well in fairness the UK needs sustained net immigration. More so if we go down the manufacturing road that everyone wants.

Re: 1.26 and falling
 

I wonder what you mean by that?

From my own perspective, the weak currency means an inflation of import costs and a decrease in overseas travel. Coupled with [potential tarrifs] to deliver exports, as the [likely] result of brexit, it doesn't seem to be at all positive.

Re: 1.26 and falling
 

The weak currency more than offsets the likely export tariffs. Let's not forget we don't have to trade with the EU (and they are not our largest trade partner).

Brexit aside - the UK needs to reform it's economy and export more of everything. Manufacturing needs a desperate boost as does almost everywhere north of Paddington. A low currency will support that.

London will ultimately benefit too. Never bet against the innovation that happens there and a low currency will help service exports (as is already being shown).

Ok imports will be more expensive. Great - we will import less as we will slowly restructure the economy.

Very few countries want strong currencies. As we enter into a global growth slowdown all major economies will be trying to devalue their currency were they can. This is why the Fed is so nervous about putting up rates when it clearly should be doing so.

Re: 1.26 and falling
 

mine is fixed @ 7.33 - happy days :thumbsup:

Re: 1.26 and falling
 

I'm very jealous!

Have you had inflationary increases? in line with cost of living increase in Dubai. I have heard that this is not commonly awarded and kind of offsets the exchange rate gains when comparing to the UK, since inflationary increases are common in the UK

Re: 1.26 and falling
 

nope no inflationary increases whatsoever...being in the O&G industry all pay rises/bonuses/increase of any kind to one's overall package have been totally frozen

Re: 1.26 and falling
 

So then, are you remitting more GBP now than you were originally? I understand that this depends on you actually saving your money in GBP and your spending habits being constant, but assuming that is true and the only changes have been Dubais inflation (and perhaps the inflation of your consumerism) and GBPs devaluation.

Not to be prying....

Re: 1.26 and falling
 

We all got 8pct this year. Thought that was quite reasonable. Although it only equates to a handful of peanuts and a packet of crisps.

Re: 1.26 and falling
 

Are you not worried about your job? What your view of the future of the price of the barrel?

Re: 1.26 and falling
 

Totally....to be honest my expenses haven't increased significantly and so I am able to convert more into GBP savings and transfer home.

Re: 1.26 and falling
 

Globally we have already trimmed down as much as we can in terms of employees and overhead costs right across the board.


I am the FC for the ME region and so I look after 3 different entities within the parent company (2 in the UAE and 1 in Qatar). 2 of the 3 entities are doing well (Alhumdulillaah) and the 3rd entity (which generates the lowest sales compared to the other two) is just about breaking even. And so unless all 3 companies go completely under water, my position is safe:fingerscrossed:

Re: 1.26 and falling
 

That is great, I got nothing - one of the downsides of no unions.

8% is a great increase, and probably in line with general inflation.

Re: 1.26 and falling
 

I could have been clearer. 8pct was the average. Some more, some less.

Millhouse goes from boom to bust but is never average.

Re: 1.26 and falling
 

Hello Gents. Good to see your names pop up.

Dunno about this. Weak might help short term but the inflation won't.

Somewhere in the middle, you know, a normal currency that allows some manufacturing on decent scale but also doesn't mean we're fleeced when importing.

8pct is a good average. We weren't included in this years for a very spurious and bullshit reason so we'll be 18-20 months before we have the conversation. Will be gunning for a good one.

Similarly, have already started preparing my bonus dicsussions. It goes like this;
"Please can I have my full bonus"
"Yes Scamp"
"Thank you"

Downsides of no unions? :blink::blink::blink::huh::huh:

Re: 1.26 and falling
 

Well This is the paradox. Advanced economies have been trying to create inflation since the 2008 financial crisis with little to no effect. The only thing they managed to inflate was house prices which are ultimately destructive.

Some inflation will help with the debt overhang. We are not talking Zimbabwe inflation here.

Re: 1.26 and falling
 

Millhouse remember the days when the Germans would burn their wages, because it was cheaper than buying wood?

https://s-media-cache-ak0.pinimg.com...7667507315.jpg

Re: 1.26 and falling
 

Of course not, but it's such a fine balancing act isn't it. Pre-During-Post Brexit are we going to be able to find some sort of sensible levels of either?

House prices are a ****ing joke though. I blame the baby-boomers who got everything handed on a plate and could buy a house at 18yrs old for 16 pence.

Re: 1.26 and falling
 

The issue really is lax lending and near zero interest rates. 3pct rental yields on housing is terrible but only possible when the interest rates are near zero. And im not sure we will ever see high interest rates in advanced economies again.

Re: 1.26 and falling
 

True. House prices have rocketed.
Can't see them ever dropping much though. Even in 2008 they hardly plummeted like equities.

Re: 1.26 and falling
 

Exactly why inflation in the real economy with be welcomed by policy makers. House prices have a chance of devalue in real terms without any politically embarrassing nominal reductions.