GBP slipping rapidly

[foxy lady]

Nothings up. Well not the pound anyway.

 

Today's events just made a nonsense of the idea that the referendum wouldn't affect sterling. Which is what you seem to have been arguing.

 

Ah so you are arguing that Boris backing leaving is a game changer and because that means we will leave the EU Sterling plumetted (based on 5 minutes trading this morning)? Or are you arguing that Boris joining the out camp means we will now stay in the EU which has caused Sterling to plummet? We need to know. :hihi:

[sgtkate]

Sterling is down due to uncertainty about which decision the UK will make. I don't think it can realistically be used as a method to judge an EU exit or stay.

 

Although, nearer referendum time it possibly could be used to show public opinion (failing pound would imply we were going for an EU exit and that brings uncertainty) but that seem highly convoluted when you could just run a poll!

[foxy lady]

When something is a long way off, the markets don't give a monkeys, why do you think so much credence is given to daily fluctuation instead of looking at the longer forecasts. Its because the majority of money made in the city is done on day trading, not the 5 year plan trading done by private investors or pension fund managers.

 

It has now appeared on the horizon and so the market begins to fluctuate more rapidly. It will continue to do so until the date of the referendum. After which there will be a re-adjustment and all will go back to normal.

 

The Pound dropped to near parity with the Euro due to the then government's intention to adopt the Euro as our currency. They worked the market along with the help of the CEB to push the Pound down. Then Labour realised how unpopular the Euro was and ditched the and stopped meddling in the markets.

 

So the exchange rate went up a bit then came down a bit, but is still higher than it was. That sound like a currency market to me.

 

The UK recovered from recession faster than the Eurozone. The pound went up. The Eurozone is recovering now. Equilibrium is restored. Wow. What a shocker.

[LeMaquis]

The UK recovered from recession faster than the Eurozone. The pound went up. The Eurozone is recovering now. Equilibrium is restored.

 

Very poor lie there. Until 2008 the pound was buying €1.40. Now it's buying less than €1.30. I wouldn't base your arguments on lies that are easily disproved. It's not gong to fool anyone but you.

[foxy lady]

Very poor lie there. Until 2008 the pound was buying €1.40. Now it's buying less than €1.30. I wouldn't base your arguments on lies that are easily disproved. It's not gong to fool anyone but you.

 

Oh dear you got it wrong again. Between 2000 and 2009 the Pound plummeted from 1.7 to 1.02 Euros before climbing back to 1.3/1.4 over the next 5 years.

http://www.pounds2euro.com/Charts

 

I wouldn't base your arguments on lies that are easily disproved. It's not gong to fool anyone but you.

 

http://www.telegraph.co.uk/finance/economics/12043677/UKs-trade-deficit-in-goods-with-EU-hits-record-high.html

 

10 Dec 2015

 

The UK’s trade deficit with the European Union in goods has widened to its largest level on record, reflecting sterling's ascent against a weakening euro.

 

The goods deficit with the EU grew to £8.1bn in October, a record level, according to Office for National Statistics (ONS) figures. The deficit with the EU was driven largely by the UK’s trade with members of the ailing eurozone group of countries.

 

The value of the euro has fallen against the pound since the start of the year, reflecting the weakness of the currency bloc and the extension of a quantitative easing scheme by the European Central Bank.

 

A cheaper euro has made UK exports less competitive, and reduced demand for them on the continent. Kallum Pickering, of Berenberg, said that sterling's appreciation against the euro "has been mimicked in the trade balance".

 

"The upside for the UK is that this is probably as bad as it’s going to get," he said. However, "there is unlikely to be a significant improvement" either. The UK’s manufacturers will have to hope that the eurozone’s recovery can pick up pace.

Edited February 22, 2016 by foxy lady

[Bonjon]

I wish it would start to recover, I want to buy some holiday euro's!!

 

At this point if I see the purchase price for euro's hit 1.30 to the pound i'll have to bite, last year I exchanged at over 1.40 to the pound

[spilldig]

It might give us a chance to manufacture our own goods instead of importing cheap rubbish.The value of the pound is too high anyway,that is why manufacturing is declining in britain.

 

How the heck do you make that out? As I said in post number 22 it should be back where it was at nearly 2 Euros to the £ and US$4 to the £. We should not have to devalue sterling in order to export more.

[tzijlstra]

Oh dear you got it wrong again. Between 2000 and 2009 the Pound plummeted from 1.7 to 1.02 Euros before climbing back to 1.3/1.4 over the next 5 years.

http://www.pounds2euro.com/Charts

 

I wouldn't base your arguments on lies that are easily disproved. It's not gong to fool anyone but you.

 

http://www.telegraph.co.uk/finance/economics/12043677/UKs-trade-deficit-in-goods-with-EU-hits-record-high.html

 

10 Dec 2015

 

The UK’s trade deficit with the European Union in goods has widened to its largest level on record, reflecting sterling's ascent against a weakening euro.

 

The goods deficit with the EU grew to £8.1bn in October, a record level, according to Office for National Statistics (ONS) figures. The deficit with the EU was driven largely by the UK’s trade with members of the ailing eurozone group of countries.

 

The value of the euro has fallen against the pound since the start of the year, reflecting the weakness of the currency bloc and the extension of a quantitative easing scheme by the European Central Bank.

 

A cheaper euro has made UK exports less competitive, and reduced demand for them on the continent. Kallum Pickering, of Berenberg, said that sterling's appreciation against the euro "has been mimicked in the trade balance".

 

"The upside for the UK is that this is probably as bad as it’s going to get," he said. However, "there is unlikely to be a significant improvement" either. The UK’s manufacturers will have to hope that the eurozone’s recovery can pick up pace.

 

The Euro AND Dollar gained 2p each against the Pound today, on the back of Boris Johnson campaigning for Brexit. You don't have to believe it, it is completely irrelevant whether you do or not, the simple fact is that all the Forex trade-fora and news sources are discussing the potential impact of Brexit on the value of the pound.

 

You know what is really telling? They are NOT discussing the potential impact of Brexit on the Euro.

 

You think on that for a while.

[foxy lady]

The Euro AND Dollar gained 2p each against the Pound today, on the back of Boris Johnson campaigning for Brexit. You don't have to believe it, it is completely irrelevant whether you do or not, the simple fact is that all the Forex trade-fora and news sources are discussing the potential impact of Brexit on the value of the pound.

 

You know what is really telling? They are NOT discussing the potential impact of Brexit on the Euro.

 

You think on that for a while.

 

I wouldn't worry. The impact on the Euro was near collapse a while ago when the Greeks were deciding whether to default or not. They were certainly discussing the Euro then when it dropped against all major currencies.

 

http://www.bloomberg.com/news/articles/2015-07-05/euro-drops-as-greece-votes-no-to-austerity-demands-kiwi-falls

 

 

The situation is just going through normal fluctuations and will stabilize once the status quo is reached.

 

By the way the FTSE rose 36 points today. Did you miss that?

 

You think on that for a while.

 

---------- Post added 22-02-2016 at 20:21 ----------

 

I wish it would start to recover, I want to buy some holiday euro's!!

 

At this point if I see the purchase price for euro's hit 1.30 to the pound i'll have to bite, last year I exchanged at over 1.40 to the pound

 

I think it is being put down to Dennis Skinner falling in with the BREXIT side. Aparrently it wiped 2 cents off the value of the Pound.

Edited February 22, 2016 by foxy lady

[ghost rider]

How the heck do you make that out? As I said in post number 22 it should be back where it was at nearly 2 Euros to the £ and US$4 to the £. We should not have to devalue sterling in order to export more.

 

I think some people are only bothered about how many euros they will get for their holidays rather than boosting british manufacturing.You will find that many british manufacturers would like the value of the pound to reduce including the owner of JML.My heart lies with Britain not the Costa del Sol.And just to support my argument i will include this link.

 

http://www.purefx.co.uk/foreign-currency-exchange-advice/view/what-are-the-advantages-of-a-strong-and-weak-pound

Edited February 22, 2016 by ghost rider