Jump to content
House Price Crash Forum
Sign in to follow this  
treestump

Dollars V Pound

Recommended Posts

Can anyone tell me why the U.K. Pound is so strong against other currencies. Is it because of clever book keeping or is 90% of the talk down of our economy a load of rubbish. I am perplexed.

Share this post


Link to post
Share on other sites
Can anyone tell me why the U.K. Pound is so strong against other currencies. Is it because of clever book keeping or is 90% of the talk down of our economy a load of rubbish. I am perplexed.

- The dollar is doomed and has gone down by 30% against many currencies since 2000

- The pound is down from above 1.60 Euro in 2000 to below 1.5 Euro today (approx 8%) and it has fallen even further against the Swiss Franc. The attached chart shows how much major currencies have lost against gold. Gold5yr.png

So not that strong I am afraid. What keeps it from going down quicker?

- North sea oil and gas (not for much longer I am afraid..... production peaked in 1999 and is declining rapidly)

- Britain is a tax haven for foreigners

- London is the world's most active foreign currency dealing center, with over 50% of the world market. (http://fxtrade.oanda.com/currency_trading/fxmarket.html)

Anyway the declining oil/gas production, the worsening trade balance and the economy on the brink of a recession will soon make the pound join the dollar on the way down.

post-2055-1126305633_thumb.jpg

Edited by cgnao

Share this post


Link to post
Share on other sites
Can anyone tell me why the U.K. Pound is so strong against other currencies. Is it because of clever book keeping or is 90% of the talk down of our economy a load of rubbish. I am perplexed.

Relativley high interest rates. However, if UK rates fall below 2% above Euro rates, as many predict, then the Pound will probably come under sustained selling pressure. Ceratinly it appears that many UK manufacturers need a significantly lower Pound.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.