Any ideas as to why our currency is starting to strengthen again?
 

Gordon Brown has saved us all. :luxhello:

Guess he was serious when he made his "save the world" comment.

No I am genuinely interested. As I thought all the experts said the £ was just going to keep on getting weaker. :wonder:

I don't know why against the dollar, but I feel the pound with rally against the euro. Some of the european economies are in 5hitstreet and cannot devalue their currencies like we've done to lessen debt. It'll either drag the euro down of force some countries to pull out;either way it doesn't look good for the euro.

Plus, we being alone it'll be easier for us to ride the recession without the cumbersome restraints a common currency with many member countries bring. If I was a foreigner I'd be hoovering up as much UK assets as I could.

And that is what I said before Xmas, but quite a few thought I was barking up the wrong tree. Some industries haven't been affected at all and many are starting to see an upturn already. More media hype as usual.

Outlook for the $ is weak, the £ marginally less so.

Or it's a dead cat bounce.


Why I typed count God only knows! :D

I think its due to the fact that eurozone is getting reading to cut their interest rates. Its only a matter of time before europe takes its crash and brings the pound back to normal :)

BBC NEWS | Business | Euro weakens on rate cut evidence

mmmm Astrologist only exits to make these Economic experts look good!!!

its just "the market" -- it will waiver about for a bit, and once the "herd mentality" of the experts subsides it will find its true level

obviously the general sentiment in the market was that it had fallen too far (usually due to said "herd mentality)

Quote:
"No I am genuinely interested. As I thought all the experts said the £ was just going to keep on getting weaker. :wonder: "


Are these the same experts who said that oil prices would keep rising? ;)

Or a dead cat bounce?

America keep on printing money and this is just going to keep bringing the dollar down.

Least Mr.Brown didn't opt for that, we'd be in more sh*t than anyone.

You could view it for the £ as first in the sh*t first out the sh*t.

oohhh ****

Brown in final gamble: to print money

If they do that it will be to combat deflation.

The USA is deeper in the ****e than we are !

dunx

The £ might yet plunge again when our interest rate is cut tomorrow.

Possibly.

This must, IMHO, be looked at as a long term problem. A 10% fluctuation does not mean much if it only lasts for a few days. We are looking at -0.5% or even -1% tomorrow of the BoE rate. I suspect we need to wait a good 3 months to see what the impact is of the rate changes.

3 months ago pound was $2 now its $1.50 erm :wonder:

Because most people now think the BoE will cut just 50bps today whereas more people believed they'd do 100bps previously. If they do cut to 1% today then the currency will definitely sell off again.

I hope it improves as off on hols in Feb and havent bought any dollars yet.

Simon

Sorry Simon, hoping for the opposite. Have two invoice in US$ about to be paid, and they'll be getting another at the end of Jan.

If you're really worried about it, set up a hedge using a spread betting firm.

Personally ive always felt our economy is stronger that the us, the only reason ours dropped so fast was the oil barrel prices being set in usd so helped bolster them, now we're in for the long haul the usd and the euro will be more widely affected.

That and it takes time to adjust to the initial shock of the credit crunch anyway.

Come again?? Mitigate corporate exposure by giving City Index a call, is that what you're suggesting? :D