Currently £1 = $1.937

oopps

£/$ is a complete gamble. Both currencies are doomed to fall, complete guessing game which will fall faster IMO.

I am almost sure the sterling is fundamentally weaker.

First, interest rates still have to go down in the UK, the US have them already near bottom.

Second, the UK market have the same fundamental problems as the US, and the dollar is a reserve currency and is getting a boost from that, something the sterling is not. The dollar also have history on it's side compared to the sterling.

Another thing, I think the sterling also are overvalued in terms of prices of services, hotels, food at resturant's compared to what you can buy in the US with the dollar.

If I had to choose, (I don't have my money in eighter), then I would choose the dollar even if I had to pay a 20 % premiun (if the "investment" was locked in 3 years)

In my opinion the dollar will definitely be the long term winner in the race!

I'm dreaming of a 1 $ pound, as I'd be able to give up the day job.

I could see the dollar gaining against the pound, but not to that much. The US is clearly ahead of us in the credit crunch, and will pull out of recession before we do.

This could be a great time to stock up on US assets.

I bought puts on £/$ last week for my pension fund. Will be 1.80 by yr end, no problem.