Value of the Pound
Discussion
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I've got a mate waiting to pay off a course in New Zealand Dollars, he's gutted as it has basically fallen to an all time low and doesn't look to be coming back any time soon, has lost about £1000 over the last few months because of this.
Alternatively, my mail order website shipping throughout Europe is doing very well.
Alternatively, my mail order website shipping throughout Europe is doing very well.
djt77 said:
How much more is the pound going to drop? I look at the rate and everyday it's falling more and more. How much longer will it take for the pound to be get up to where it used to be? Will it ever?
It is the same rate today against the US Dollar than it was 4 months ago. And it is 10% higher than it was six months ago.Apart from that, yes it is dropping like a stone.
Edited by limpsfield on Thursday 8th October 08:52
djt77 said:
How much more is the pound going to drop? I look at the rate and everyday it's falling more and more. How much longer will it take for the pound to be get up to where it used to be? Will it ever?
Where are you looking, i watch the $/GBP on a daily basis and infact its gone up today over last week and its been hovering around 1.58/1.6 for the last 2 to 3 months, so maybe im missing something somewhere.Think he is looking here:
http://uk.reuters.com/business/currencies/quote?sr...
Tho Im not sure how good that is as the Euro hasnt changed its just that when the crash of the £ last year happened it never fully got back on its feet compared against the $ for some reason, and the EU being the EU didnt help the £ and deicded to just keep everything the same so its a slow raod to recovery... in the past few months it has dropped a little bit...
http://uk.reuters.com/business/currencies/quote?sr...
Tho Im not sure how good that is as the Euro hasnt changed its just that when the crash of the £ last year happened it never fully got back on its feet compared against the $ for some reason, and the EU being the EU didnt help the £ and deicded to just keep everything the same so its a slow raod to recovery... in the past few months it has dropped a little bit...
phumy said:
djt77 said:
How much more is the pound going to drop? I look at the rate and everyday it's falling more and more. How much longer will it take for the pound to be get up to where it used to be? Will it ever?
Where are you looking, i watch the $/GBP on a daily basis and infact its gone up today over last week and its been hovering around 1.58/1.6 for the last 2 to 3 months, so maybe im missing something somewhere.
Cactussed said:
Largely a function of interest rates. Once they start going back up, so will the £.
In the mean time, domestic holidays are looking increasingly attractive...
fIn the mean time, domestic holidays are looking increasingly attractive...
k that... do what I do and spend time in the hotter areas like Asia.. it works out cheaper than Europe at the moment...
Jackpot said:
I've got a mate waiting to pay off a course in New Zealand Dollars, he's gutted as it has basically fallen to an all time low and doesn't look to be coming back any time soon, has lost about £1000 over the last few months because of this.
Also the NZD has been going up for a while, its been very strong this last month. Really not a good time to be exchanging pounds for NZD. There is a fair bit of popular hyperbole about the £/€/$ and their current stati/relationship, as well as the seemingly unavoidable fusion of the UK with the EUSSR.
I see it this way. Nothing is going to drop through the floor as it is bloody important to lots of external people that it doesn't. Pissing people off by printing money and devaluing their assets may make them cross and buy gold, people may even shout about it and preach armageddon, however long term, it will be fine.
€/£ The pound certainly is weak at the moment, not really in relation to the dollar, but certainly the Euro, which makes it apparent. We are being slightly pinched by higher imported goods costs, but we are manouvering pretty well in relation to avoiding the iceberg, via QE. If we had been a member of the Euro, we would have been a few degrees worse than the PIIGS and would have been right in the poo. Obviously, this would have upset our ability to pay £X million a day into the 'train.
€. We hear about how super the Euro is and how we are a bit silly that we did join it when the messiah would have really liked us to. We can look at the magnificent erection that is the euro and deny that it may be suffering from priapism (http://en.wikipedia.org/wiki/Priapism). Every currency needs to function in a bandwith for the functioning of it's particular economy. This inflexibility and a combination of other factors add up to a big problem. As in Priapism, a hardon can be a really really bad and dangerous thing. The PIIGS are in the st, not just a bit, but lots. They don't have the media going "New Labour, should have joined the Euro back when, etc" and rubbing the failure in the awful capitalists faces. The lack of converage on the overly strong Euro surprises me. I could put my tin foil hat on and wonder if this could be a case for further integration, esp when Pres Blair works his magic.......with Mandy, etc.
The Euro is in danger of tearing itself to bits. Not only does a strong Euro hurt the potential sales of producers like Germany/France, it obliterates the lesser economies. With the infrastructure and big government of the good times, they are in great danger of ripping themselves to bits. They do not have QE as an option to steer their economies. The point will come that if the Euro does not weaken against other currencies, the st will hit the fan hugely. This could take the form of Germany and the PIIGS pulling out of the Euro.
Not sure what's happening about the dollar, but it seems quite similar to us. The Chinese can't afford to let the dollar go down the toilet (like the doom mongers would have you believe). Instead, they have to hold on for the pickup and try to hedge against inflation.
I can see a big push for the EUSSR, but there will be a fair old load of backlash in the UK. Eg, they still haven't had the accounts signed off.... instability, etc.
That's how I figure it
I'd say it may be a wise move to sell Euros and buy Pounds..... History will judge that....
I see it this way. Nothing is going to drop through the floor as it is bloody important to lots of external people that it doesn't. Pissing people off by printing money and devaluing their assets may make them cross and buy gold, people may even shout about it and preach armageddon, however long term, it will be fine.
€/£ The pound certainly is weak at the moment, not really in relation to the dollar, but certainly the Euro, which makes it apparent. We are being slightly pinched by higher imported goods costs, but we are manouvering pretty well in relation to avoiding the iceberg, via QE. If we had been a member of the Euro, we would have been a few degrees worse than the PIIGS and would have been right in the poo. Obviously, this would have upset our ability to pay £X million a day into the 'train.
€. We hear about how super the Euro is and how we are a bit silly that we did join it when the messiah would have really liked us to. We can look at the magnificent erection that is the euro and deny that it may be suffering from priapism (http://en.wikipedia.org/wiki/Priapism). Every currency needs to function in a bandwith for the functioning of it's particular economy. This inflexibility and a combination of other factors add up to a big problem. As in Priapism, a hardon can be a really really bad and dangerous thing. The PIIGS are in the s
t, not just a bit, but lots. They don't have the media going "New Labour, should have joined the Euro back when, etc" and rubbing the failure in the awful capitalists faces. The lack of converage on the overly strong Euro surprises me. I could put my tin foil hat on and wonder if this could be a case for further integration, esp when Pres Blair works his magic.......with Mandy, etc. The Euro is in danger of tearing itself to bits. Not only does a strong Euro hurt the potential sales of producers like Germany/France, it obliterates the lesser economies. With the infrastructure and big government of the good times, they are in great danger of ripping themselves to bits. They do not have QE as an option to steer their economies. The point will come that if the Euro does not weaken against other currencies, the s
t will hit the fan hugely. This could take the form of Germany and the PIIGS pulling out of the Euro. Not sure what's happening about the dollar, but it seems quite similar to us. The Chinese can't afford to let the dollar go down the toilet (like the doom mongers would have you believe). Instead, they have to hold on for the pickup and try to hedge against inflation.
I can see a big push for the EUSSR, but there will be a fair old load of backlash in the UK. Eg, they still haven't had the accounts signed off.... instability, etc.
That's how I figure it
I'd say it may be a wise move to sell Euros and buy Pounds..... History will judge that....
Edited by Shoot Blair on Thursday 8th October 10:20
Cactussed said:
Largely a function of interest rates. Once they start going back up, so will the £.
How do you figure that out? It would be true if our interest rates were out of synch or significantly lower than everybody elses but they aren't. The Fed rate is lower than ours and the ECB rate only 1/2 point higher. It's odds on that when our rates start to rise so will those of the eurozone and the US.We are well placed to see big gains against the Hungarian Forint and the Icelandic Krona when rates start to move though........
Richie200 said:
phumy said:
djt77 said:
How much more is the pound going to drop? I look at the rate and everyday it's falling more and more. How much longer will it take for the pound to be get up to where it used to be? Will it ever?
Where are you looking, i watch the $/GBP on a daily basis and infact its gone up today over last week and its been hovering around 1.58/1.6 for the last 2 to 3 months, so maybe im missing something somewhere.If you think that's bad, check out the Yen.
Well I look at China,
since a lot of goods head from there any way
It has stayed remarkably steady against the Yuan, (RNB)
The pound is on the up, from £1.00 = RNB11.04 to £1.00 = RNB11.26
So import of Chinese goods should be cheaper.
This might just be a Chinese government manipulation, in order to fend off a resession in China, by driving the Yuan low, so by making there manufactured goods more attractive to the rest of the world.
As I get paid in UKP, and live in China, life is good, and getting better
since a lot of goods head from there any way
It has stayed remarkably steady against the Yuan, (RNB)
The pound is on the up, from £1.00 = RNB11.04 to £1.00 = RNB11.26
So import of Chinese goods should be cheaper.
This might just be a Chinese government manipulation, in order to fend off a resession in China, by driving the Yuan low, so by making there manufactured goods more attractive to the rest of the world.
As I get paid in UKP, and live in China, life is good, and getting better
uk_vette said:
Well I look at China,
since a lot of goods head from there any way
It has stayed remarkably steady against the Yuan, (RNB)
The pound is on the up, from £1.00 = RNB11.04 to £1.00 = RNB11.26
So import of Chinese goods should be cheaper.
This might just be a Chinese government manipulation, in order to fend off a resession in China, by driving the Yuan low, so by making there manufactured goods more attractive to the rest of the world.
As I get paid in UKP, and live in China, life is good, and getting better
Unfortuantely that's not a good example as China have pegged the value of the currency against a basket of currencies to protect their exporters.since a lot of goods head from there any way
It has stayed remarkably steady against the Yuan, (RNB)
The pound is on the up, from £1.00 = RNB11.04 to £1.00 = RNB11.26
So import of Chinese goods should be cheaper.
This might just be a Chinese government manipulation, in order to fend off a resession in China, by driving the Yuan low, so by making there manufactured goods more attractive to the rest of the world.
As I get paid in UKP, and live in China, life is good, and getting better
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