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Control Freak

Sterling Exchange Rate Vs Us/eu Interest Rates

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Here is a question for some of you out there.

I have been reading a number of posts out there inferring/speculating that the EU will raise rates/the US is raising rates, and will continue to do so for the near (and medium?) future.

Given this, why is/has the pound not weakened against EITHER of these curencies?

The GBP is well up on the low of a week ago against the Dollar, and shows no sign of weakness against the Euro.

Are you inferring that the markets have calculated in an increase in the UK base rates?

Correct me if I am wrong, but is not a strong pound deflationary?

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Are you inferring that the markets have calculated in an increase in the UK base rates?

No, they're just not expecting a cut anymore.

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Correct me if I am wrong, but is not a strong pound deflationary?

Absolutely, which makes the rising inflation rate all the more worrying I would say. If the pound does resume its falls the inflation rate will another get good hard push upwards.

Edited by FTBagain

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  • 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%



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