Reply to: So the pound is up tulip creek...

[threaded]

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

The economy crashed, as predicted several months ago, and now it's nothing but a race to the bottom, fnar fnar, as the politicians try to hide this from you.

This will become obvious in a few days, when the rest of you catch up and say, hang on the economy has crashed.

Like, doh!

[SantaClaus]

Yes.

Zerohedge: DOW 10,000!!!! Oh Wait, Make That 7,537

Interesting website.

Even more interesting quote from Steve Wynn, Las Vegas Casino owner:

http://www.zerohedge.com/article/ste...m-mary-poppins

"It's a pleasure to do business in China: the government is much more even-handed, much more considered, much more gentle than it is here. I feel much more secure as a businessman in China than I do at the moment in the United States of America."

and this:

"Wynn, who should know Vegas better than anyone, does not join the Las Vegas analyst cheerleading squad: "We are occupied on weekends but the rates are much lower and what is missing is the mid-week convention and meeting business" and not coming back for an indefinite period of time."

"Also some observations on which social class is impacted by Obama the most: "the wealthy can "duck" tax increases, they can postpone income - when the government starts to overtax the economy, as they are in the process of doing, the pain of it is felt by the very people that the politicians claim to be serving: the working middle class. Inflation and devaluation of the dollar is making everybody's buying power who voted for Barack Obama go through the floor.""

This stock market rally is a smokescreen and the bubble WILL burst.

[HairyArsedBloke]

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

Yes.

Zerohedge: DOW 10,000!!!! Oh Wait, Make That 7,537

[AtW]

A lower pound is good news for UK exporters, who include our brethren abroad.

Quiet. The UK exporters. I am sure there will be jobs galore created by booming exports thanks to drop in value of GBP.

Considering that many exporters have to import raw materials for euros/dollars, it won't be exactly that straightforward.

[Doggy Styles]

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.

Honestly, you are funny.

A lower pound is good news for UK exporters, who include our brethren abroad.

[BoredBloke]

Looking at it's performance recently the pound has been on a steady shrink from it's 7th Aug high. I'm paid in Swiss Francs and it's decline is great at the moment. Looking at my pay this month I'm due an extra 800 quid after tax because of it's movement. Obviously it can go the other way also. I'll just have to keep doing my make the pound fall through the floor dance.

[JoJoGabor]

GBP EUro and USD are all dropping or due to drop. USD may rebound in the next couple of months, I bought USD recently in the hope the USD will rebound, but in hindsight I wish I'd bought one of the Far Eastern currencies such as HKD or Yen, I think they're likely to stay the strongest

[AtW]

Yes, I forgot it's rip-off UK

In this case it's got nothing to do with rip off - they just bought goods ealier when pounds was strong, but new contracts now will carry lower pound value, so if pound will stay at current levels for a long period of time it will inevitably result in adjustment as importers won't be able to manage such a reduction in their margins.

[AtW]

£ 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.

[Paddy]

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.

Yes, I forgot it's rip-off UK

[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.

[TimberWolf]

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

[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 $$$$.

[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.

[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%.