GB pound weakening
Nov 28th 2008 | 5:18 am
#1
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From: The Charente - still smiling.
Nov 28th 2008 | 7:12 am
#2
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Re: Euro weakening
yes there more rate cut s to come but think Uk will do the same aswell think that stay around the same
we know in mid dec coming whats happen
we know in mid dec coming whats happen
Nov 28th 2008 | 9:45 am
#3
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From: Guadalhorce Valley, Málaga
Re: Euro weakening
The UK Monetary Policy Committee meets on Thursday when UK interest rates are likely to be cut again which will probably affect the exchange rate.
Dec 2nd 2008 | 7:19 am
#4
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From: East Sussex
Re: Euro weakening
Back down to 1.17?
The Euro may well weaken a shade, but that doesn't mean the pound will necessarily gain ground. In fact there are some who say the pound has further to fall:
ft article
The fall in the pound is obviously bad news for those abroad changing their currency into dollars or Euros. But it may help the UK economy to recover from its present plight.
The Euro may well weaken a shade, but that doesn't mean the pound will necessarily gain ground. In fact there are some who say the pound has further to fall:
the UK must ultimately save more and the current account must go into surplus. If these are to be achieved, a big real depreciation of the exchange rate must occur. This can be secured either by a long period of falling nominal wages and prices of non-tradeable goods and services or by a fall in sterling. Fortunately, the latter has delivered what is needed.
The fall in the pound is not the problem; it is the solution. The question is only whether it has gone too far. I would strongly argue it has not. Last month, the real exchange rate calculated by JPMorgan was at the bottom of the trading range of the past three decades. It must now be slightly below it. Yet it is still well above levels reached before the UK became a large oil producer (see chart below). Sterling’s fall is inconvenient for many who believed the value of the pound between 1997 and 2007 was “normalâ€. It never looked sustainable.
The fall in the pound is not the problem; it is the solution. The question is only whether it has gone too far. I would strongly argue it has not. Last month, the real exchange rate calculated by JPMorgan was at the bottom of the trading range of the past three decades. It must now be slightly below it. Yet it is still well above levels reached before the UK became a large oil producer (see chart below). Sterling’s fall is inconvenient for many who believed the value of the pound between 1997 and 2007 was “normalâ€. It never looked sustainable.
The fall in the pound is obviously bad news for those abroad changing their currency into dollars or Euros. But it may help the UK economy to recover from its present plight.
Dec 2nd 2008 | 7:56 am
#5
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From: Guadalhorce Valley, Málaga
Re: Euro weakening
Currently 1.1724 and falling according to the Firefox add-on at the bottom of my screen!
Dec 2nd 2008 | 8:47 am
#6
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From: Ayamonte
Re: Euro weakening
On the radio today it was said that Gordon the Moron and his gray haired gofer may be cutting interest rates again
Dec 2nd 2008 | 9:09 am
#7
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Euro weakening
As for the comments that a weak pound will help the UK - why? - they don't have anything to export anymore.
Dec 2nd 2008 | 8:54 pm
#10
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From: The Charente - still smiling.
Re: Euro weakening
Back down to 1.17?
The Euro may well weaken a shade, but that doesn't mean the pound will necessarily gain ground. In fact there are some who say the pound has further to fall:
ft article
The fall in the pound is obviously bad news for those abroad changing their currency into dollars or Euros. But it may help the UK economy to recover from its present plight.
The Euro may well weaken a shade, but that doesn't mean the pound will necessarily gain ground. In fact there are some who say the pound has further to fall:
ft article
The fall in the pound is obviously bad news for those abroad changing their currency into dollars or Euros. But it may help the UK economy to recover from its present plight.
What it will not redress is the structural deficit, the amount this bunch of banana republic refugees have been spending that was (and is) entirely unfunded. In fact never existed and was simply borrowed from the future. Yours and my future.
Even the totally unrealistic forecasts of twelve months ago are frightening enough. Now they are planning to borrow an extra 300 billion over the next 5 years. And that is if they are right that public finances will not worsen further, and both the world economy AND the UK recover next year.
The former looks possible, but Gordon the Moron is still recruiting yet more bean counters who he hopes will have no choice but to vote for him if they wish to keep their completely unnecessary jobs (and nice fat salaries and final salary pensions which are again completely unfunded
)But there is NO plan to repay debt. Nor is there any plan to cut or even slow down the growth in public sector employment. Nor in some fashion to cut the public sector pension bill. Nor start repaying the hundreds of billions in the PFI.
His plan to bring an end to the completely unsustainable debt-fuelled, low interest rate consumer boom he has created is - BORROW MORE!
Which he cannot afford to pay back without the interest rate charge shooting an even bigger hole in public finances. Which is why they keep spouting on about the risks of deflation, which neatly enables them to justify cutting interest rates to keep their borrowing costs down, at least until after the election they plan to call in the Spring.
Thereafter, with inflation rampant again, Gordon and his merry band plan to simply inflate the problem away. And tough luck to all pensioners and savers.
So there is a very real prospect that sterling does indeed (as I have said before) have a very long way to fall yet. The fiscal position is significantly worse than in the 1970s, when Healey overspent so badly he had to borrow from the IMF to keep Britain afloat. Indeed worse than in the 1940s too. Because this time the IMF are already running out of funds, and there is no Marshall Aid to plug the gap either.
The City is already beginning to discuss the possibility of Britain defaulting. So the combination of inflation and the risk of default does significantly increase the prospect of higher interest rates in the next few years. But it may now be a zero sum game as the value of any savings one has could continue to shrink.
Dec 2nd 2008 | 10:00 pm
#11
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From: between cocentaina and gorga
Re: Euro weakening
[QUOTE=Beachcomber;7030362]Currently 1.1724 and falling according to the Firefox add-on at the bottom of my screen
RETIRED ;-))
Joined: Jul 2003
Posts: 20,156
From: Benalmadena Pueblo,Spain
Re: Euro weakening
[QUOTE=dunmovin;7032542]
You have an old version of firefox so you may be getting old prices. ;-))
Dec 3rd 2008 | 2:40 am
#13
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From: between cocentaina and gorga
Re: Euro weakening
not firefox
vista sidebar
vista sidebar
Dec 3rd 2008 | 3:14 am
#14
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From: Guadalhorce Valley, Málaga
Re: Euro weakening
Mine's a Firefox add-on. I don't have Vista. I'm waiting for the optimum moment to move some euros! 
Dec 3rd 2008 | 11:26 am
#15
Joined: Apr 2008
Posts: 1,433
Re: Euro weakening
Use this for latest money market prices its updated frequently.
http://newsvote.bbc.co.uk/2/shared/f.../one_month.stm
Use link below re money transfers.
http://www.currenciesdirect.com/uk/f...rpayments.aspx
http://newsvote.bbc.co.uk/2/shared/f.../one_month.stm
Use link below re money transfers.
http://www.currenciesdirect.com/uk/f...rpayments.aspx
Last edited by poshnbucks; Dec 3rd 2008 at 11:40 am.
