Traders make £2bn bet against the pound

[petetong]

Traders make £2bn bet against the pound

"Traders have wagered a £2bn bet on a plunge in the pound after the Bank of England failed to deliver on a widely expected interest rate rise earlier this month.

Shorts predicting a pound slump have soared to their highest level since June 2020, weekly trading data suggests. It marks a sharp reversal from just a few weeks ago, when bets for the pound were at a near four-month high as investors geared up for a string of rate rises to curb the surge in inflation."

[househunter123]

https://www.theguardian.com/world/2021/nov/24/new-zealand-interest-rate-hike-raises-pressure-on-central-banks-over-inflation

 

We may not be far behind though....

[Shrink Proof]

56 minutes ago, househunter123 said:

https://www.theguardian.com/world/2021/nov/24/new-zealand-interest-rate-hike-raises-pressure-on-central-banks-over-inflation

 

We may not be far behind though....

Yes, any decade now...

[dpg50000]

4 minutes ago, Shrink Proof said:

Yes, any decade now...

Exactly. Could never see any BOE Governor talking like this:

 

Its governor, Adrian Orr, warned that homeowners in New Zealand’s red-hot housing market had to prepare for tougher times ahead.

“Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates,” Orr said.

Edited November 24, 2021 by dpg50000
Formatting

[winkie]

Interest rates up in the month of December, first time in over 40 years?

[Trampa501]

I remember when £2 billion was seen as an enormous sum of money <  puts Dr Evil face on >

[winkie]

2 minutes ago, Trampa501 said:

I remember when £2 billion was seen as an enormous sum of money <  puts Dr Evil face on >

Count a billion out in seconds it will take someone over 31 years.

[Huggy]

32 minutes ago, dpg50000 said:

“Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates,” Orr said.

We'll find out exactly what they "own" once IRs shoot for the moon. They might be a little surprised that a home wasn't it, and they actually owned a big fat unrepayable mortgage instead as the bank walks off with their keys.

[dugsbody]

2 minutes ago, Huggy said:

We'll find out exactly what they "own" once IRs shoot for the moon. They might be a little surprised that a home wasn't it, and they actually owned a big fat unrepayable mortgage instead as the bank walks off with their keys.

Bookmarked

[fellow]

20 minutes ago, winkie said:

Count a billion out in seconds it will take someone over 31 years.

But it will only take the government 10 hours to spend it.

[TheCountOfNowhere]

1 hour ago, househunter123 said:

https://www.theguardian.com/world/2021/nov/24/new-zealand-interest-rate-hike-raises-pressure-on-central-banks-over-inflation

 

We may not be far behind though....

I've been buying currency ( forex trading ) of naitons who are raising interest rates.  I dont see why you'd keep your money in the £ any more if you can avoid it.

[winkie]

7 minutes ago, fellow said:

But it will only take the government 10 hours to spend it.

Quite.......theirs to spend, ours to pay for........we are now even paying wages and pensions with newly created debt.

[Huggy]

13 minutes ago, dugsbody said:

Bookmarked

For when though? If this was the Big Remain Thread, if interest rates are not at 15% and the average house price at 2x average salary tomorrow afternoon, that would be 'proof' of failure.

18 months? 😃

[scottbeard]

8 hours ago, petetong said:

Traders make £2bn bet against the pound

"Traders have wagered a £2bn bet on a plunge in the pound after the Bank of England failed to deliver on a widely expected interest rate rise earlier this month.

Shorts predicting a pound slump have soared to their highest level since June 2020, weekly trading data suggests. It marks a sharp reversal from just a few weeks ago, when bets for the pound were at a near four-month high as investors geared up for a string of rate rises to curb the surge in inflation."

Presumably somewhere though some party must have the other side of that trade ie a £2bn bet the pound rises?

If you put a bet on Red Rum to win the bookmaker has an equal and opposite exposure ie an asset if he loses.

[Mikhail Liebenstein]

1 hour ago, Trampa501 said:

I remember when £2 billion was seen as an enormous sum of money <  puts Dr Evil face on >

Yes indeed. My own pension and various investments are all overseas, so I'm around 1/1000th of that total. So really it isn't that much, not at the scale of the bond market.

BTW, this is part of my investment strategy. Any UK stocks I do hold all have international earnings.

[Mikhail Liebenstein]

1 minute ago, Mikhail Liebenstein said:

Yes indeed. My own pension and various investments are all overseas, so I'm around 1/1000th of that total. So really it isn't that much, not at the scale of the bond market.

BTW, this is part of my investment strategy. Any UK stocks I do hold all have international earnings.

 

Quite likely we will be at Euro parity, then Dollar parity sometime this decade. 

[Patfig]

1 hour ago, Shrink Proof said:

Yes, any decade now...

When you reach the 1970's

[scottbeard]

50 minutes ago, Mikhail Liebenstein said:

 

Quite likely we will be at Euro parity, then Dollar parity sometime this decade. 

Both of which was said on HPC last decade.  It didn’t come true then and it won’t now. 
 

[shlomo]

15 minutes ago, scottbeard said:

Both of which was said on HPC last decade.  It didn’t come true then and it won’t now. 
 

We are one dimensional we know the problems of the UK, let’s be honest the US and EU also have problems but we do not talk about them as it’s not relevant to our day to day situation 

[zugzwang]

20 minutes ago, scottbeard said:

Both of which was said on HPC last decade.  It didn’t come true then and it won’t now. 
 

 

The UK is already being cut to ribbons by import inflation. Any further declines of GBP vs USD will be murderous.

Recession ahoy!! 👊

[Mikhail Liebenstein]

52 minutes ago, zugzwang said:

 

The UK is already being cut to ribbons by import inflation. Any further declines of GBP vs USD will be murderous.

Recession ahoy!! 👊

 

We need to hire Gideon (no not Georgie)

https://en.m.wikipedia.org/wiki/Gideon_Gono

 

[coypondboy]

13 hours ago, petetong said:

Traders make £2bn bet against the pound

"Traders have wagered a £2bn bet on a plunge in the pound after the Bank of England failed to deliver on a widely expected interest rate rise earlier this month.

Shorts predicting a pound slump have soared to their highest level since June 2020, weekly trading data suggests. It marks a sharp reversal from just a few weeks ago, when bets for the pound were at a near four-month high as investors geared up for a string of rate rises to curb the surge in inflation."

Need to ask George Soros if he is tempted as he did rather well last time.

https://www.thebalance.com/black-wednesday-george-soros-bet-against-britain-1978944

[nome]

5 hours ago, Trampa501 said:

I remember when £2 billion was seen as an enormous sum of money <  puts Dr Evil face on >

I recall the producer of Wall Street (1 and 2) saying how when doing his research into the stock markets for each movie all the figures involved had transformed from being counted in millions for the first film to being counted in billions for the follow up.

[winkie]

 

[Flat Bear]

4 hours ago, shlomo said:

We are one dimensional we know the problems of the UK, let’s be honest the US and EU also have problems but we do not talk about them as it’s not relevant to our day to day situation 

Exactly