HAMISH_MCTAVISH Posted June 5, 2009 Share Posted June 5, 2009 Pound slides on political turmoil The pound has fallen against the dollar and euro, hit by uncertainty over the UK's political situation after a third minister resigned from the cabinet. Early results from the local elections have also showed poor results for the Labour Party. The pound slid against the dollar to $1.6022, a one-week low, while the pound hit a two-week low against the euro of 1.1277 euros. On Wednesday, the pound had hit a seven-month high of almost $1.67. "The UK political situation is rapidly moving from bad to worse which is acting as a major drag on the pound despite more encouraging housing news yesterday," said French financial services firm Calyon in a note to clients. 'Difficult circumstances' Investors think there is a risk that the UK could see a leadership vacuum at a fragile time for the economy. However, news that Alistair Darling will remain in his job as chancellor was largely welcomed in financial circles. "It is not really the time to be changing the chancellor," said Howard Archer, an economist at IHS Global Insight. "Obviously, Darling has had his problems, but he has had to face very difficult circumstances. There has been a lot of criticism, but he has not done that bad a job," he added. http://news.bbc.co.uk/1/hi/business/8084631.stm Quote Link to comment Share on other sites More sharing options...
You Ain't Seen Nothing Yet Posted June 5, 2009 Share Posted June 5, 2009 (edited) http://news.bbc.co.uk/1/hi/business/8084631.stm I just transferred some pounds to euros early this morning on the basis this news would devalue the pound a bit more. Think I did my smallish transaction just in the nick of time. Edited June 5, 2009 by You Ain't Seen Nothing Yet Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted June 5, 2009 Share Posted June 5, 2009 Are you suggesting that now would not be a good time to boot Broon and his cronies out of office? Quote Link to comment Share on other sites More sharing options...
Guest มร หล Posted June 5, 2009 Share Posted June 5, 2009 Are you suggesting that now would not be a good time to boot Broon and his cronies out of office? Bob, now would be the perfect time. Quote Link to comment Share on other sites More sharing options...
ParticleMan Posted June 5, 2009 Share Posted June 5, 2009 The stories people make up to post-facto rationalise market behaviour crack me up. (the far simpler - and indeed true - explanation, is that the market just plain ran out of USD buyers; so unsurprising was this at the time that - without naming names - someone on this forum called it just as it happened; someone tuned in and willing to take a ballsy gamble might just've made a packet...) Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted June 5, 2009 Share Posted June 5, 2009 The stories people make up to post-facto rationalise market behaviour crack me up. Totally agree. When the oil price was shooting up there were daily stories along the lines of 'unrest in Nigeria has caused the price of oil to rise $3 today'. Of course when the unrest was resolved the price never fell back by $3. It was just people trying to justify speculation. Very much as the housing boom was. Quote Link to comment Share on other sites More sharing options...
spivT Posted June 5, 2009 Share Posted June 5, 2009 The stories people make up to post-facto rationalise market behaviour crack me up. (the far simpler - and indeed true - explanation, is that the market just plain ran out of USD buyers; so unsurprising was this at the time that - without naming names - someone on this forum called it just as it happened; someone tuned in and willing to take a ballsy gamble might just've made a packet...) spot on. infact this morning some twonk on cnbc tried to go down the route of trying to connect ftse slide yesterday with the political turmoil engulfing the labour party, when someone else pointed out the chinalco-biliton-rio thingy news. he quickly conceded....infact the mining story is itself probably only part of the story. As for currencies, far too much extrapolation going on especially with what sounds like nonsense talk about the supposed decline of the dollar as reserve currency status. Mid to long-term there are issues with all currencies but why that should effect short-term movements ? perhaps someone can explain, the mid to long-term stuff is a known unknown, why should it make any difference on the pound 'sliding' or other headlines they try to conjure up about daily currency moves. Quote Link to comment Share on other sites More sharing options...
ParticleMan Posted June 8, 2009 Share Posted June 8, 2009 Folks, all majors are touching cloth on their USD crosses; if we break through the May 21st levels there is going to be some very sharp moves (as the USD breaks higher to next resistance); depending on what happens in today I may well trade this myself. This is probably setting the stage for the next leg down in the asset markets (a stronger dollar will crush the nascent recovery stateside in due course either by firming rates or by killing exports or some combination of both); a Dec 09 short on S&P looks like a good bet. Quote Link to comment Share on other sites More sharing options...
Justice Posted June 8, 2009 Share Posted June 8, 2009 So the pound hit's 1.14 against the euro and it's time to go shopping in europe and then at 1.12 it's back to the pound is crashing !!!!!!!!!!!!! it's trading sideways but if you care to look at many of my posts made over 2 years ago you will see i persisted in saying £1=1.10 euro's and few people here agreed but now it's as if they knew all along. now i ask how are you going to pay near £5k in council tax 2 years from now that will be needed to cover the banksters bailout and don't come back in 2 years time pretending you knew it would happen all along because thats lieing! what i do know from recent events is if the £/UDS$/Euro goes into meltdown then they will all go down within days none will survive without the other so forget them and us and maybe consider a little silver or gold if the price comes down and no this is not ramping metals else i'll be telling you to buy at any costs. Quote Link to comment Share on other sites More sharing options...
1888 Posted June 8, 2009 Share Posted June 8, 2009 £1 = €1.145 no safe havens anywhere gold down to $945 /oz I've given up trying to predict whats coming its obvious no-one has a clue anymore Quote Link to comment Share on other sites More sharing options...
redgenieuk Posted June 8, 2009 Share Posted June 8, 2009 So the pound hit's 1.14 against the euro and it's time to go shopping in europe and then at 1.12 it's back to the pound is crashing !!!!!!!!!!!!!it's trading sideways but if you care to look at many of my posts made over 2 years ago you will see i persisted in saying £1=1.10 euro's and few people here agreed but now it's as if they knew all along. now i ask how are you going to pay near £5k in council tax 2 years from now that will be needed to cover the banksters bailout and don't come back in 2 years time pretending you knew it would happen all along because thats lieing! what i do know from recent events is if the £/UDS$/Euro goes into meltdown then they will all go down within days none will survive without the other so forget them and us and maybe consider a little silver or gold if the price comes down and no this is not ramping metals else i'll be telling you to buy at any costs. Essentailly the key to protection is useful assets. It doesn't matter what it is. If you consider gold/silver to be useful fair enough. The rush for assets is probably what will bring the whole system down if it happens. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted June 8, 2009 Share Posted June 8, 2009 gold down to $945 /oz dont you mean gold up to $945 ? it was $920 a month ago. Quote Link to comment Share on other sites More sharing options...
laurejon Posted June 8, 2009 Share Posted June 8, 2009 A worthless currency, no housing, no hospitals, huge debts, detention without trial..........Its what people want. Quote Link to comment Share on other sites More sharing options...
1888 Posted June 8, 2009 Share Posted June 8, 2009 dont you mean gold up to $945 ?it was $920 a month ago. It was over $1000 4 months ago and almost $990 last week so on the face of it its down I do expect it to rise again tho Quote Link to comment Share on other sites More sharing options...
buyerbeware Posted June 8, 2009 Share Posted June 8, 2009 (edited) Bought more pounds today. I think it could go up if a change in government is in the offing, the tories will make noise about cutting spending reflecting back to Thatcher years. Of course it will be the same sh*t, but if it looks like gordon and his "cronies" are to be punted i think the pound will rise, that is my punt. Main money spread between usd and aud. Edited June 8, 2009 by buyerbeware Quote Link to comment Share on other sites More sharing options...
tomwatkins Posted June 8, 2009 Share Posted June 8, 2009 Totally agree. When the oil price was shooting up there were daily stories along the lines of 'unrest in Nigeria has caused the price of oil to rise $3 today'. Of course when the unrest was resolved the price never fell back by $3. It was just people trying to justify speculation. Very much as the housing boom was. I heard that some Nigerian farted near a gas run-off. Very dangerous I'm told. Quote Link to comment Share on other sites More sharing options...
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