So the pound is up tulip creek...

[themistry]

So, the pound is well and truly shagged. What are peoples thoughts on how it is actually farring against other currencies in the near short to medium term.

For example, the Canadian $ is now at $1.64 - a few months ago it was at $2.00. However, is the CAN$ likely to sustain this, or is the Canadian economy going to suffer the same as our own in a few months.

Whats are peoples thoughts? Will the pound continue to drop like a stone, or are other currencies likely to drop too, balancing it out.

I personally see futher troubles brewing in the US and Europe, the $ and € can't be that far behind?

TM

[BrilloPad]

IMO the pound falling is good news.

[AtW]

GBP is no longer a minor reserve currency - yen still is, especially for trade with Japan, but who really needs GBP when there is a big reserve currency next to it - euros? UK trade will be forced to exchange back and force euros and lost few percents in process.

The case for joining euro will be overwhelming (for UK), fixing it at lower levels than now will fix the huge loss from the gamble of not joining it ten years ago.

[rsingh]

I get paid in Euros. A falling pound makes it feel like getting a pay rise everyday

[AlfredJPruffock]

So, the pound is well and truly shagged. What are peoples thoughts on how it is actually farring against other currencies in the near short to medium term.

For example, the Canadian $ is now at $1.64 - a few months ago it was at $2.00. However, is the CAN$ likely to sustain this, or is the Canadian economy going to suffer the same as our own in a few months.

Whats are peoples thoughts? Will the pound continue to drop like a stone, or are other currencies likely to drop too, balancing it out.

I personally see futher troubles brewing in the US and Europe, the $ and € can't be that far behind?

TM

If conventional wisdom says the Pound is going to drop - it will proceed in exactly the opposite directtion.

[Paddy]

If conventional wisdom says the Pound is going to drop - it will proceed in exactly the opposite directtion.

On a basket of goods at the supermarket value:

80p = 1 Euro.

I don't think it will drop more than another 20%.

[AtW]

On a basket of goods at the supermarket value:

80p = 1 Euro.

I don't think it will drop more than another 20%.

Goods in supermarket were bought some weeks ago when pound was higher, if it continues to be at current level then we'll see food inflation yet again: 15-20% seems bare minimum.

[DimPrawn]

You have to compare the effort involved in producing food and fuel vs the effort in "printing" pounds.

Look at oil now that the US are printing $$$$.

[TimberWolf]

Yeah, perhaps stocks, commodities, etc aren't really going up, money is going down.

[SantaClaus]

£ bounced off a nice 4hr trendline earlier, just as Dow was nearing 10,000.
Is this a turning point?

Lets see what happens at the FOMC rate announcement tonight.
If the US suprises us and raise rates, £ will plummet, and possibly Dow.