Jump to content

The pound is on the brink


Chancer
 Share

Recommended Posts

  • Replies 600
  • Created
  • Last Reply

Top Posters In This Topic

Gosh how time flies. I just did a search because I remembered posting about a slight increase in the pound. My comments in the post was that it is very sad that we are pleased to see a little over 1.26 to the euro. That was a devastating time but now it doesn't sound too bad.[:(]

In any case, it is very interesting to go back and read some of the comments at the time. Just a little over a year ago!

http://www.completefrance.com/cs/forums/1208172/ShowPost.aspx

Link to comment
Share on other sites

Good news for anyone whose income doesn't depend on commerce, e.g. politicians and pensioners.

Bad news for anyone in business (i.e. trying to make a living by selling things) and their employees.

It all depends on your point of view, but I suggest there are many more people in the second group than in the first.

Link to comment
Share on other sites

I met up with 2 former colleagues last night. One had just been made redundant; the other had received a letter, in common with the whole workforce, saying the company has no new orders once current jobs have been finished and that "further communications concerning the implications of this will follow shortly"....

Neither seemed too impressed with the statements being made by those suggesting that the UK economy was doing well. Well for whom?

Link to comment
Share on other sites

The Euro had a bit of a rally against the dollar this morning and that had a effect upon the pound.

Then there was bad news about UK industrial output which has declined for the 12th consecutive month.  There was also some mildly bad news about UK retail sales.  The upshot of this is the pound fell through the floor.

It is also worth noting the UK public sector borrowed more in May (it was reported today) than in any single month since records began in 1993.

It seems the market is ignoring the pound when there is good news and hammering it when there is a bad news.

I think the general sentiment in the market is that the pound is oversold.  Which means there could be a correction to the upside; i.e., it may become stronger against the euro. 

Link to comment
Share on other sites

I would not say the £ has taken a spanking as it is currently still trading above 1.17 spot to the Euro.

A potential downside for the Euro later this year, is that according to insiders, there is the likelihood of some pretty dreadful bad debt provisions being declared by some key European banks, with regards to their exposure in Eastern Europe.

The belief being that the European banks have vastly under provided for their bad debt exposures, as compared to banks in the USA and UK, who have been more in the open so far.

Link to comment
Share on other sites

Sweet17 nobody has a clue what is going to happen, but my feeling is this is more of a Don't Panic Mr Mainwaring than a We're Doomed scenario.  I'm holding onto my pounds for the time being.  They have nice pictures of the Queen on them you know.

Link to comment
Share on other sites

JMB, I read somewhere that, in uncertaint times, it's best to change small amounts at any one go and make several withdrawals over time rather than one large one.  This spreads the risk and irons out the ups and downs a bit.  Makes sense to me.

Luckily for me, I have a Nationwide account so can withdraw small amounts without paying disproportionate charges and it's always more or less spot rates with them.

But, you WILL keep an eye on the thread won't you and give us your views now and again?  I feel I need all the advice and help I can get.

BTW, have delayed taking out my private pensions (such as they are) and will only take out the state pension as the markets are in such dire straits.

Link to comment
Share on other sites

Bloomin' moat is full of Frogs.......NO, NO, I don't mean the French, don't you put words into my mouth!  I mean frogs as in croak, croak.

Talk about blanking out, have you read about me "flipping" a shack for this chateau and claiming it as my "second home"?

Look, if you want that camper van of yours to be counted as your principal home for purposes of TH or TF or indeed for des impôts, just let me know and I'll explain to you precisely how it's done..

It's a matter of saying what's in your own best interest; doesn't need to be credible..........those stupid taxpayers can just carry on supporting our wonderful lifestyles.  It's not going to be good for much longer, Wools, so we need to make the most of it, n'est ce pas?

Link to comment
Share on other sites

we've dropped off a bit from yesterday, i think those of us who want it higher are talking it up a bit, if someone offered me 1.20 in the next few months i would bite their hand off, there is so much risk that more bad news from the UK will see the pound sailing back again and i'd be kicknig myself for being too greedy!

i need to de some in the next few weeks, my broker is calling me at 1.18, ill be happy if i get that.

Link to comment
Share on other sites

The pound broke through a very important level against the dollar this morning.  We could be in for some pound strength for a while.  It is possible we could be in a run up to 1.7 to the dollar (which has been mooted as a sustainable level against the dollar - ie neither strongly undervalued nor strongly overvalued) and so if the euro doesn't also gain strength against the dollar (it's looking weak at the moment) then we could see a nice rise in the pound against the euro ...or anything else could happen ... but my bets are on further short term strength for the pound against the euro.

As I have typed this message the pound is rapidly heading back to where it started this morning.  It will be interesting to see what happens in the next few hours as I think this may give a clue as to what happens over the next few weeks.

Link to comment
Share on other sites

This is a pretty realistic assessment of the conditions in Broons Britain. When the AAA rating is pulled the pound should fall back to it’s true value of around parity. I know this is not to everyone’s taste and it may hurt some people a bit, but it sure is good if you earn Euros and want to indulge in bargain shopping for boys toys.[:D]

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share


×
×
  • Create New...