Sterling recovers

**AlfredJPruffock** · 19 December 2008, 13:50

Aye Expat

As I predicted yesterday Sterling will rise 10-15 by March against the Euro.

Germany is kaput and now this ... Euros going down folks - and the Dollar ...

The French government said on Friday it would come up with a second stimulus package next year if required to cushion a sharp recession in the eurozone’s second largest economy.

**Purple Dalek** · 19 December 2008, 14:24

Originally posted by expat View Post

Euro back below .94

It's what's known as a dead cat bounce. Them that occurs on Fridays generally don't last the day.

Parity by Xmas is my guess.

**AlfredJPruffock** · 19 December 2008, 14:49

Originally posted by Purple Dalek View Post

It's what's known as a dead cat bounce. Them that occurs on Fridays generally don't last the day.

Parity by Xmas is my guess.

You might be a Dalek - but youre wrong there Tin Head.

Xmas Party will be on the 23rd this year.

**Olly** · 19 December 2008, 14:53

Yep but won't our next interest rate cut bring it back down again?

**Bagpuss** · 19 December 2008, 15:34

Another cut will test the resistance to parity. I hope he doesn't do it because I think the pound has hit the bottom ceteris paribus

**Olly** · 19 December 2008, 16:14

so do I move last months yoyos across now 1.06656 offered by Cater Allen. Or wait till next interest rate cut (if there is one)?

**AtW** · 19 December 2008, 16:16

Originally posted by Olly View Post

Or wait till next interest rate cut (if there is one)?

They'd be crazy to do another rate cut. So it can happen then!

**Cyberman** · 19 December 2008, 17:47

Originally posted by AtW View Post

They'd be crazy to do another rate cut. So it can happen then!

It's all relative. At least we are in a position to make unilateral rate cuts in order to try to stimulate the economy. There are many countries locked into a stagnant Eurozone that do not have this tool, and are wishing that they did have !!
The Eurozone will have to cut rates in due course, but we are ahead of them in the game and this should be to our benefit in the short-term. Certainly, it's benefitting me on my 2% tracker mortgage. It's just a shame that so many have locked into fixed rates because this is hindering the upturn.

**AtW** · 19 December 2008, 18:19

Originally posted by Cyberman View Post

At least we are in a position to make unilateral rate cuts in order to try to stimulate the economy.

It seems to me in this case it would have been much better if rate decisions were not made after undue influence from single Govt. I'd rather have euros here and euro central bank policy - this may well shaft people who overindebted themselves but it was their own choice and they should pay for it in full even if that is only going to serve as a warning to future generations about staying away from debt.

Sterling recovers