Pluto Posted September 23, 2005 Share Posted September 23, 2005 Anyone know what's up with sterling - looking like it's tanking versus the dollar? Maybe there's another interest cut coming? Hmm... Quote Link to comment Share on other sites More sharing options...
MarkG Posted September 23, 2005 Share Posted September 23, 2005 The British economy is in the crapper and the lunatics at the BoE cut interest rates while Greenspan was raising his.... we're likely to continue to be weak against the dollar until the US bubble bursts too or the BoE get their heads screwed on and join the rest of the world in raising rates. Quote Link to comment Share on other sites More sharing options...
DoubleBubbleTrouble Posted September 23, 2005 Share Posted September 23, 2005 (edited) Possibly the news on a minor readjustment of the Yuan; http://news.bbc.co.uk/1/hi/business/4274658.stm Sterling is one of the currencies it has more scope to increase value against. Not good for inflation prospects seeing at the only things seemingly left in the CPI basket are CD's, DVD players and hamster food. Edited September 23, 2005 by DoubleBubbleTrouble Quote Link to comment Share on other sites More sharing options...
look to the past Posted September 23, 2005 Share Posted September 23, 2005 I thought it was just the dollar doing very well as the hurricane is not as bad as first believed. Quote Link to comment Share on other sites More sharing options...
MarkG Posted September 23, 2005 Share Posted September 23, 2005 Have we even outsourced hamster food to China now? Quote Link to comment Share on other sites More sharing options...
rockdoctor Posted September 23, 2005 Share Posted September 23, 2005 Is it related to the relative position of each country in the cycle. UK being a bit further along the road towards HPC and its related recession? US HPs still booming, lots of MEWing and apparently healthier economy? How is the pound doing against the ozzie dollar? Quote Link to comment Share on other sites More sharing options...
DoubleBubbleTrouble Posted September 23, 2005 Share Posted September 23, 2005 How is the pound doing against the ozzie dollar?<{POST_SNAPBACK}> Not so hot; Australian Dollar 2.34450 52 week high 2.56680 I dare say the IMF slagging us off again for being debt junkies didn't help. Quote Link to comment Share on other sites More sharing options...
gone west Posted September 23, 2005 Share Posted September 23, 2005 Not so hot;Australian Dollar 2.34450 52 week high 2.56680 I dare say the IMF slagging us off again for being debt junkies didn't help. <{POST_SNAPBACK}> Or the Loonie: 2.0789 52 week high: ~2.38 Quote Link to comment Share on other sites More sharing options...
Alberta Tatlock Posted September 23, 2005 Share Posted September 23, 2005 Or the Loonie:2.0789 52 week high: ~2.38 <{POST_SNAPBACK}> Mmmm, moved the majority of our GBP last June at $2.45 but left some in the UK as a hedge in case we didn't like Canada. Love Canada, but now watching our GBP dwindle Quote Link to comment Share on other sites More sharing options...
MarkG Posted September 23, 2005 Share Posted September 23, 2005 Is it related to the relative position of each country in the cycle. UK being a bit further along the road towards HPC and its related recession? Agreed. Also the resource-based currencies like the Australian and Canadian dollars are still going up as prices rise. Love Canada, but now watching our GBP dwindle But think how much more you'll have in sterling if you do decide to come back . I just wish there wasn't such a damn long wait for visas so I could have been over there last year... I'm glad I got most of my money out near $2.20. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 23, 2005 Share Posted September 23, 2005 Foreign investors who ploughed in at the top of this bubble stand to get caned. 30-50% on the capital and another what 10/20/30% + on currency if they are unlucky - kiss goodbye to your assets territory. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 23, 2005 Share Posted September 23, 2005 Possibly the news on a minor readjustment of the Yuan;<{POST_SNAPBACK}> That doesn't explain it all, when the USD starts appreciating against GBP then you know there's a problem! Quote Link to comment Share on other sites More sharing options...
Pluto Posted September 23, 2005 Author Share Posted September 23, 2005 A weaker pound means that Chinese DVD player and Microwave is going to more expensive. Geeze they are going to really hunt around to find stuff that's cheap to keep the inflation under 3%. They really are in a pickle. "To Raise or Not to Raise (interest rates), that is the real question" Naw.... I think they'll reduce them by 1/2 % just to keep the BTL'ers and Home owners happy for a few more weeks. Job loses are becoming an everyday event. Who's going to buying houses even a 0% interest!!! Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 23, 2005 Share Posted September 23, 2005 A weaker pound means that Chinese DVD player and Microwave is going to more expensive. Geeze they are going to really hunt around to find stuff that's cheap to keep the inflation under 3%. They really are in a pickle. "To Raise or Not to Raise (interest rates), that is the real question" Naw.... I think they'll reduce them by 1/2 % just to keep the BTL'ers and Home owners happy for a few more weeks. <{POST_SNAPBACK}> Indeed, the MPC only have a mandate to deal with inflation, that's their only objective, the housing market or even growth figures are not their concern. When they were cutting rates like stupid two years ago despite the housing market going off like a friday night in Belfast they boldy stated that the 'housing market is not part of our mandate' along with 'there doesn't appear to be a bubble, etc' Shame they don't follow the same logic on the way down. Quote Link to comment Share on other sites More sharing options...
verolution Posted September 23, 2005 Share Posted September 23, 2005 it was the reval of the yuan Quote Link to comment Share on other sites More sharing options...
MarkG Posted September 23, 2005 Share Posted September 23, 2005 (edited) Another possibility is that people are expecting a rally after the hurricane and they're starting this one early... even before it hits . Edited September 23, 2005 by MarkG Quote Link to comment Share on other sites More sharing options...
gone west Posted September 23, 2005 Share Posted September 23, 2005 it's been lower than now before and I think the long term avg is 1.6 dollars<{POST_SNAPBACK}> Indeed and I believe that is where it is headed. If confidence in the UK economy wobbles at the same time that growth prospects are seen in Germany and Japan, we could see further weakening. What really matters is how is sterling doing against the yuan and against a barrel of crude. Quote Link to comment Share on other sites More sharing options...
MarkG Posted September 23, 2005 Share Posted September 23, 2005 What really matters is how is sterling doing against .. snip... a barrel of crude. i.e. the US dollar... against which it's sinking fast. Quote Link to comment Share on other sites More sharing options...
Pluto Posted September 26, 2005 Author Share Posted September 26, 2005 Look's like Sterling in for another rough day. Quote Link to comment Share on other sites More sharing options...
Pluto Posted September 27, 2005 Author Share Posted September 27, 2005 Looks like Sterling in a another free fall. The money markets don't like GB's flippent attitude towards the incredible debt everyone has and the way he dismisses the bubble as a non event. Quote Link to comment Share on other sites More sharing options...
FTBagain Posted September 27, 2005 Share Posted September 27, 2005 High oil price, low pound against the dollar. Looks like inflationary pressures are building in tandem again. Thank GB. IR's up soon then. Quote Link to comment Share on other sites More sharing options...
erd Posted September 27, 2005 Share Posted September 27, 2005 High oil price, low pound against the dollar. Looks like inflationary pressures are building in tandem again. Thank GB.IR's up soon then. It's different this time. Quote Link to comment Share on other sites More sharing options...
Marina Posted September 27, 2005 Share Posted September 27, 2005 Possibly the news on a minor readjustment of the Yuan;http://news.bbc.co.uk/1/hi/business/4274658.stm Sterling is one of the currencies it has more scope to increase value against. Not good for inflation prospects seeing at the only things seemingly left in the CPI basket are CD's, DVD players and hamster food. I walked into Tesco's on Sunday and was quite surprised to see a DVD player for sale for £22. They'll be cheaper than a packet of fags soon. Wonder if the Chinese person that made it can afford one? I can afford one in every room in the house. There is some weird imbalance in the global economy. There always has been to some extent, but it's getting nuts now. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted September 27, 2005 Share Posted September 27, 2005 (edited) When i was on holiday in greece we made friends with the viatnamese guy that ran the chinese resterant in the hotel! He invited us back to his house and cooked for us.... Anyway he started showing off about his tabacco he gets his wife sends to him. It costs 0.20 euros for a KG of tabbacco, but he has to pay 8.00 Euros Tax on it. Talk about global imbalance.... Edited September 27, 2005 by moosetea Quote Link to comment Share on other sites More sharing options...
FTBagain Posted September 27, 2005 Share Posted September 27, 2005 Out of interest, every 1% off sterling is (of course) 1% off the real value of your house. It's one of the ways bubbles in other markets have been dealt with in the past. Durch, Very good point had not thought about it! That should encourage the foreign investors to start off loading their UK Realestate investments! Oh goody! Bring it on. Quote Link to comment Share on other sites More sharing options...
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