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Realistbear

Forex Focus: Sterling Turns The Corner: All Positive For U K

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http://uk.finance.yahoo.com/news/Forex-focus-sterling-turns-tele-3345900371.html;_ylt=Atijf9W2X7OrR98Pxo2WMAfSr7FG;_ylu=X3oDMTE4dDJlYzduBHBvcwM2BHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNmb3JleGZvY3Vzc3Q-?x=0

Forex focus: sterling turns the corner
9:37, Wednesday 9 February 2011
Surprisingly, sterling has been the best-performing major currency so far this year, writes Liz Phillips
It’s up against the US dollar and the euro, as well as against last year's strongest currencies - the Swiss franc, Japanese yen and Aussie dollar.
This is great news for pensioners and those living off savings held in sterling. You could be getting the best rates for two years.../
So what is going on?
Part of the boost has been a growing belief that the UK may be the first major economy to raise interest rates. The Bank of England Monetary Policy Committee meets tomorrow and faces a difficult decision. The jump in oil prices caused by the unrest in Egypt and neighbouring countries will fuel inflation, already at worrying levels. Yet a hike in rates may damage the fragile economy.
If interest rates are kept on hold again this week we may see a temporary dip in the pound, but the majority view is that the pound could stay strong in the medium to long term.

There is no need for Merv to take action as all is going so well. Exports are up, jobs are increasing, house prices are resilent and our deficit is contained.

Even if Merv does remain vigilant the overall resilience of the economy will keep £ racing ahead of the rest just as long as house prices are maintained. UK Plc is HPI.

What the chances that a HPC (20% down or more) will be avoided? IMO: 0.

Edited by Realistbear

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What the chances that a HPC (20% down or more) will be avoided? IMO: 0.

The nightmare scenario is what will happen if the BoE raises rates to be marginally higher than for any other major currency. This could provoke an influx of funding

This isn't what I expect, but it is a risk...

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There is no need for Merv to take action as all is going so well. Exports are up, jobs are increasing, house prices are resilent and our deficit is contained.

Even if Merv does remain vigilant the overall resilience of the economy will keep £ racing ahead of the rest just as long as house prices are maintained. UK Plc is HPI.

What the chances that a HPC (20% down or more) will be avoided? IMO: 0.

Is Nadeem Walayat going to be in clover? He has backed a truck up to load it with our glorious pounds sterling

"I don't flip flop on (the GDP) news, but instead took the dollar rally as a good opportunity to buy more sterling (on leverage).

I did a quick analysis on the GDP, that confirmed my expectations for £/$1.85"

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I am struggling with these articles that seem completely out of sink - it is not the first time.

This article proclaiming the revival of the GBP comes after 3 days in a row of the pound dropping (against EUR) by about 1%... however last week the pound rose substantially wrt EUR (up 2%+) so why publish this today rather than last week? Does it take them a long time to write a paper?

Incidentally, the GBP is still 25% down on EUR in longer term and still 4% lower than in was a few weeks ago...

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  • 311 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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