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Realistbear

Times: Soaring Sterling Is Eroding U K Exports

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http://business.timesonline.co.uk/article/...2339184,00.html

The Times September 02, 2006

Sterling and lower US demand blamed for fall in exports
By Gabriel Rozenberg, Economics Reporter
EARLY signs that a strong pound is undermining the fragile recovery in manufacturing emerged yesterday as figures showed that activity slowed to its weakest pace for five months. The strength of sterling and lower demand from America were blamed for the first fall in British exports since the start of the year......./
Paul Dales, of Capital Economics, said that it was apparent that exports had fallen when the eurozone’s manufacturing sector remained much stronger than the UK’s.
“The fall (in the export balance) could be the first sign that the strength of the sterling exchange rate and a weakening in demand in the US are starting to hurt the UK economy,” he said.

A few more IR hikes should fix the problem..er, no..that will just make exports even higher...but with inflation rising IR will have to rise.............. :blink:

Gordon is between the rock and that hard place. :o

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Since when is Sterling 'soaring'? It's still down 15% against the Canadian dollar over the last year, and hardly moved against the US dollar or the Euro in that time.

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Since when is Sterling 'soaring'? It's still down 15% against the Canadian dollar over the last year, and hardly moved against the US dollar or the Euro in that time.

1 U.K. £ =

1 1.9053

1.71 in November 2005, almost 1.91 at the close on Friday!!

See graph, it tells the story graphically:

http://uk.finance.yahoo.com/currency-conve...=GBP&to=USD

Seems it is now impacting exports and will do little for Gordon's balance of payments problem. :lol:

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  • 302 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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