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Pound Taking A Hit

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Testing support levels last seen in 2001 and 1992 @$1.42. If it breaks $1.40 / $1.39 it is all the way to $1.10 in a quick fashion.

:ph34r::ph34r:

Edited by zinny01

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Testing support levels last seen in 2001 and 1992 @$1.42. If it breaks $1.40 / $1.39 it is all the way to $1.10 in a quick fashion.

:ph34r::ph34r:

Is there a nine year cycle, or are the Government a bunch of clowns?? The weakest US economy since the thirties, and our currency poised to lose 50% of it's value against theirs!!

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Inflation figures, due to be released today, are expected to go down a lot (from >4% to 2.7%), and if that is true, BoE is more likely to cut interest rate again next month. That is why the sterling is going down ... again

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Inflation figures, due to be released today, are expected to go down a lot (from >4% to 2.7%), and if that is true, BoE is more likely to cut interest rate again next month. That is why the sterling is going down ... again

I think what is likely to happen is that the inventory rundown phase - which we are now in where excess stock bought / book for production from long ago in many cases gets bled through the system then the collapse in the sterling (for that is what it is now) in combination with the quantitative easing will unleash a round of inflation. Knowing our luck it will be timed with the low in the commodity markets. Whether the cpi registers it or not there will be imported inflation that will make the last few years seem like a walk in the park - as a measure of their effect if not in the actual figures.

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Considering everyone else is screwed, this is a sad indictment of the UK economy. Hovering just above 1.4.

Edited to add that inflation data is out at 9.30 UK time.

Edited by cht

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Considering everyone else is screwed, this is a sad indictment of the UK economy. Hovering just above 1.4.

Edited to add that inflation data is out at 9.30 UK time.

Has now broken below 1.40...which was a strong historical resistance. Oops.

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US $ = Euro 1.29751 Pound 1.39519

Sadly, I sold some $ a month or so ago at 1.49! I still hold the majority of my STM fund in $ and think this is the long term bet. I think the Euro ios about to be hit very hard and will see near parity vs. the $ quite soon. Germany is is deep trouble due to collapsing exports and PIGS do not have enough to keep the EZ viable in terms of an overvalued currency.

The world is in trouble but when the US get flu the rest get something worse. It still holds true.

THis is the beginning of the end for Brown. he has lost his fight to survive because banks cannot and should not lend to people and businesses on the verge of bankruptcy. It is too easy in the former "miracle economy" to open up a business, go bust with all the taxpayer's money and then open up under a different name with a clean slate. No bank is going to lend under such conditions. We need a root and branch clear out.

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CPI down from 4.1% to 3.1%.

Big drop, but not quite as big as expected, so maybe sterling will recover a bit now.

But RPI below 1%. That's yikes territory.

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But RPI below 1%. That's yikes territory.

Is that goodbye to any RPI-based pay rises then - am I right in thinking this is a common practice?

Our pay rises (or should that be pay 'alteration') are usually confirmed in Feb / March and back-dated so mine is screwed!!

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Is that goodbye to any RPI-based pay rises then - am I right in thinking this is a common practice?

Our pay rises (or should that be pay 'alteration') are usually confirmed in Feb / March and back-dated so mine is screwed!!

Yes, yes and yes.

Then inflation will return later in the year. Just not in our pay packets.

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Is that goodbye to any RPI-based pay rises then - am I right in thinking this is a common practice?

Our pay rises (or should that be pay 'alteration') are usually confirmed in Feb / March and back-dated so mine is screwed!!

Depends on the month they choose to use the 'stats'. Many increases are based on the inflation figures of last September, when inflation (not sure which measure) was 5%. Expect a lot of Daily Wail gnashing of teeth when civil service increases of 4-5% are announced in March. Positive spin will be that pensions, state and other index-linked ones should go by 4-5% as well.

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US $ = Euro 1.29751 Pound 1.39519

Sadly, I sold some $ a month or so ago at 1.49! I still hold the majority of my STM fund in $ and think this is the long term bet. I think the Euro ios about to be hit very hard and will see near parity vs. the $ quite soon. Germany is is deep trouble due to collapsing exports and PIGS do not have enough to keep the EZ viable in terms of an overvalued currency.

I disagree

Isn't there something in the EU constitution that prevents the Euro being printed to cover deficit spending?

Euro will go UP big time vs pound/$

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I disagree

Isn't there something in the EU constitution that prevents the Euro being printed to cover deficit spending?

Euro will go UP big time vs pound/$

I agree with you. Being a multi-national currency, the euro is simply less vulnerable to government meddling than the pound or dollar. It would be much more difficult to devalue the euro for economic reasons, and so IMO the euro is likely to remain stable irrespective of the state of the Eurozone economies.

Edit: Not sure that's covered by the EU "constitution" though.

Edited by snowflux

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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