Gbp

[d000hg]

I think SAS is catching, that was as flimsy as one of his. I don't think you know owt. Predict £/$ at lunch time tomorrrow...

[fullyautomatix]

OK, put simply :

Interbank lending collapsed - leading to the collapse of Lehmans. This was largely American interbank lending that dried up, but then the "contamination" went global.

At the minute, the interbank lending in Eurozone is drying up, owing to Greece, and so the markets are twitchy. To say this has the potential to go global is a bit like saying the sun "may" come up tomorrow morning around dawn.

HTH

And all this is related to GBP sinking against all major currencies, how?

What you are regurgitating is something that all the financial commentators been telling us for a fair few months.

[fullyautomatix]

There is a reason, and I have the answers. I just am tired after all this SAS bashing and need sleep. Can we pick this up again tomorrow, say around 9? If you all sit cross legged on the story telling mat around this time I can fill you in.

I seriously doubt if you have any idea what is going on in all this GBP trading business. In other words, you are no Soros are you ?

If you are so sure of your knowledge, why dont you put your money where your mouth is ?

Something is going on but mere mortals on a forum do not have a clue about it.

[TimberWolf]

GBP has been sinking steadily for weeks now. New inflation figures were in today and the BoE said interest rates were going to stay low for the foreseeable future, despite the jump in inflation and pressure would be put on central banks to help keep base rates low. Also announced today was that our inflation calculation may be changed, to make it appear lower (even if fairer). Would you want to hold Sterling?

[HairyArsedBloke]

The markets are selling the GBP because Gordon Brown is no longer in a position to save the world.

[TimberWolf]

Here's what some FX website has to say:

GBP/USD

The Pound continues to see its losses pile up as speculation rises that the European debt crisis is will have a negative impact on the U.K. economy. Indeed, BoE member Adam Posen told U.S. broadcaster National Public Radio Tuesday that "sixty percent of our trade is with the euro area. So we view this as a very real risk.” A rise in the U.K. consumer price index to 3.7% which is well above the central bank’s 3.0% threshold failed to slow bearish momentum. The MPC isn’t expected to raise rates anytime soon following their dovish quarterly inflation report. Indeed, we have seen yield expectations begin to have a greater influence on price action with its correlation surging to 34% from 12% a week ago. Meanwhile, broader risk aversion remains the primary driver of negative GBP/USD sentiment with its relationship strengthening to 50% from 39% a month ago as the issues in Europe continue to spark global concern.

Read more: DailyFX - Pound Continues To Be Dragged Lower By Dimming Yield Expectations DailyFX - Pound Continues To Be Dragged Lower By Dimming Yield Expectations

[AtW]

Not really. As in t'other thread, Euro is in crisis. So why is GBP not gaining against EUR?

Why would GBP gain if UK's debt ratio is worse than Greece and there is nobody out there to bail UK out?

[threaded]

I think SAS is catching, that was as flimsy as one of his. I don't think you know owt. Predict £/$ at lunch time tomorrrow...

7100

[HairyArsedBloke]

Predict £/$ at lunch time tomorrrow...

OK, I'm game.

To one decimal place I guess that at 13:00 BST GBPUSD will be: 1.4

Normal caveats apply.

[threaded]

OK, I'm game.

To one decimal place I guess that at 13:00 BST GBPUSD will be: 1.4

Normal caveats apply.

That's what I just said (well, 1.408)