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Sterling Rises Sharply On Increases In House Prices

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1 GBP =1.46010

Pound to Euro: 1.19965

Land registry data hit and the pound blasted off 1.5 cents.

It seems that the market is buying the never ending boom "cycle."

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1 GBP =1.46010

Pound to Euro: 1.19965

Land registry data hit and the pound blasted off 1.5 cents.

It seems that the market is buying the never ending boom "cycle."

Hmm. I don't the LR figure had anything to do with it! It was a dissapointing slow down if anything.

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1 GBP =1.46010

Pound to Euro: 1.19965

Land registry data hit and the pound blasted off 1.5 cents.

It seems that the market is buying the never ending boom "cycle."

wait a minute. so you're saing that as soon as gordon brown goes, there's an end to boom and bust? tongue.gif

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Land registry data hit and the pound blasted off 1.5 cents.

No it's the prudential deal nearing collapse wot did it

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http://uk.finance.yahoo.com/news/pound-rises-on-speculation-pru-takeover-is-off-reuters_molt-cbc3b499c3af.html?x=0

Pound rises on speculation Pru takeover is off
Topics:CurrenciesMergers & Acquisitions
12:36, Tuesday 1 June 2010
LONDON (Reuters) - Sterling rallied against the dollar on Tuesday, shedding earlier losses after speculation that Prudential would soon announce that it would abandon its takeover bid for AIG's Asian unit.
The pound climbed to the day's high of $1.4590 from around $1.4500 as traders cited reports that an announcement was imminent from the UK's largest insurer. It traded more than 0.3 percent higher on the day, recovering from an earlier slide to $1.4439.
Such speculation helped to drive the euro down to 83.35 pence, its weakest since December 2008.
"Sterling is being driven higher by expectations that AIG won't accept a lower offer from Prudential and that the deal could be off," said Neil Mellor, currency strategist at BNYM.
(Reporting by Naomi Tajitsu and Neal Armstrong)

So a company T/O bid failing can impact the FOREX eh?

IMO it was the house price inflation data wot triggered the buying frenzy. The traders know our financial viability relies on high house prices being maintained. If they collapse all that bank money loaned out will have to be written off and there are hundreds of billions involved.

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Sterling was at a critical level with the Euro - look at the chart. It pushed through that level and has carried on, this is more about traders and charts and triggers rather than realities, although the whole Eurozone issue is still bubbling away.

Edited by OnlyMe

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So a company T/O bid failing can impact the FOREX eh?

If a sizeable acquisition has to be made, the aquisitor has to obtain currency with which to make it, so will be buying and selling a large quantity of currency.

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1 GBP =1.46010

Pound to Euro: 1.19965

Land registry data hit and the pound blasted off 1.5 cents.

It seems that the market is buying the never ending boom "cycle."

Is the Pru not buying AIA that pushed GBP up

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If a sizeable acquisition has to be made, the aquisitor has to obtain currency with which to make it, so will be buying and selling a large quantity of currency.

They were probably also factoring in that the UK gov would quickly have to bail the pru out with extra QE

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Is the Pru not buying AIA that pushed GBP up

At the moment it is like comparing one bag of shit to another - EUR/GBP/USD what is the difference, hopelessly overleveraged economies, economically bankrupt central banks and governments espousing short term, utlimately damaging policies.

A trader's paradise, just keep on hitting the stops and push these currencies around. Use cheap effleuent money from the central banks to do it too!

See big gap .85 - > 0.80 and how it was broken today.

http://quotes.ino.com/chart/index.html?s=FOREX_EURGBP&t=&a=&w=&v=dmax

Edited by OnlyMe

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They were probably also factoring in that the UK gov would quickly have to bail the pru out with extra QE

Backdoor bailout of AIG by overpayng massively for an arm of that glorious company?

No, surely not!

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1 GBP =1.46010

Pound to Euro: 1.19965

Land registry data hit and the pound blasted off 1.5 cents.

It seems that the market is buying the never ending boom "cycle."

Dollar is falling against GBP, EIR and PLN, so its not entirely UK factors

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Dollar is falling against GBP, EIR and PLN, so its not entirely UK factors

Dollar has had massive run up - flight to safety, apparently, more like a flight to the dumbest debt mongerer with more size than the others. The ability to directly manipulate the market due to size helps, but in the end this run has/had to stop somehwhere. Maybe this is the turning point.

Edited by OnlyMe

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Fantastic news. Pound gaining vs Euro.

I've waited a while...but once it gets past the 1.20€ level, a lot of my UK sterling will be heading back to la Belle France. Not because I think the euro is any better/safer, it's just that I need the cash near to me and in euros. I get zilch I/R leaving it in a british bank. Here in France, I can get 4% with a savings account I opened a few years back that still isn't closed off. Happy days. B)

PS. I don't see sterling roaring back to 1.40€, so anywhere north of 1.20€ is fine.

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IMO it was the house price inflation data wot triggered the buying frenzy. The traders know our financial viability relies on high house prices being maintained. If they collapse all that bank money loaned out will have to be written off and there are hundreds of billions involved.

Goes to show how vital EAs are. Their window display prices control the UK's economic health.

- That plus at least one residential pwoperty sale per month (nationwide) are all that is needed to maintain our world respected financial prowess.

You have to be impressed .......... don't you?

Edited by Laura

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When you're changing pounds into dollars, the pund will fall, espcially as they were going to be buying $35bn!!

Now it's been called off, the market has bounced back up.

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When you're changing pounds into dollars, the pund will fall, espcially as they were going to be buying $35bn!!

Now it's been called off, the market has bounced back up.

1 GBP =

1.46793

Sterling's recovery is stunning. From 1.42 to almost 1.47 is around 3% which, in currency terms, is huge. Euro still heavily down vs. the $.

I am wondering what fundamentals are behind it. Recovery in house price inflation is big then there is the collapsed Pru deal and the billions BP owe the US but not much else out there top warrant such a massive shift.

IMO short lived as no plans for dealing with our debt have been laid out or implemented yet.

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1 GBP =

1.46793

Sterling's recovery is stunning. From 1.42 to almost 1.47 is around 3% which, in currency terms, is huge. Euro still heavily down vs. the $.

I am wondering what fundamentals are behind it. Recovery in house price inflation is big then there is the collapsed Pru deal and the billions BP owe the US but not much else out there top warrant such a massive shift.

IMO short lived as no plans for dealing with our debt have been laid out or implemented yet.

More opportunity for printy printy...............

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This could be your last chance to exit Sterling positions... for years to come.

2 1/2 years too late - the rot started in late 2007 and was complete in early 2009

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  • 140 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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