So what effect do we expect a bit (£150 billion bit) of quantitive easing to have. Surely this will further devalue the £ no?
So what effect do we expect a bit (£150 billion bit) of quantitive easing to have. Surely this will further devalue the £ no?
<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
So what effect do we expect a bit (£150 billion bit) of quantitive easing to have. Surely this will further devalue the £ no?
[/quote]
I've given up trying to understand the reasons but I do know that I don't like the outcome.
I just think that economically we're all in uncharted territory now. We're told that the US has been 'printing money' for a while now, yet the Pound has taken an absolute battering against virtually every other major currency over the last 9 months.
<blockquote id="quote" class="ffs">quote:[i] the Pound has taken an absolute battering against virtually every other major currency over the last 9 months.
[/quote]
That's for sure, my wife and I arrived back out in Shanghai yesterday (it is Monday morning here) and the exchange rate is much lower than when I was here last, just over 9 RMB vs 12 last year.
I have no idea where this will all end up, but I still think we have a way to go.[msnsad]
<blockquote id="quote" class="ffs">quote:I've given up trying to understand the reasons but I do know that I don't like the outcome.
I just think that economically we're all in uncharted territory now. We're told that the US has been 'printing money' for a while now, yet the Pound has taken an absolute battering against virtually every other major currency over the last 9 months.[/quote]
Interesting programme on Public Broadcasting radio about this very subject last week.
The question asked was why, if the US economy is in such a mess, the US$ is strengthening.
A panel of experts could only come up with the fact that the US economy, despite the current problems, is the only one strong enough to be certain of surviving without major lasting damage. It is the next best thing after gold, and there isn't enough gold in the world.
At that point my eyes glazed over!
Case in point - today it's down almost 3 cents to $1.38. I suppose you'll get around $1.34 retail.[msnsad]
Can anyone realistically see the £ increasing in value against the $ to anything around or above the $1.50 mark, if so can you explain your reasoning.
FWIW, my guess is that we will be looking at it bottoming out at around $1.26, about $1.21 on the high street.
<blockquote id="quote" class="ffs">quote:Can anyone realistically see the £ increasing in value against the $ to anything around or above the $1.50 mark, if so can you explain your reasoning.
FWIW, my guess is that we will be looking at it bottoming out at around $1.26, about $1.21 on the high street.[/quote]
The best brains in the city, with access to all data available think it is worth err $1.38 today.
If you look at the forward rates you will get some idea of their thinking. If they thought it was going to bottom out at $1.26 it would be there NOW.
So what chance do we mortals have of guessing?
Frankly, I don't know but 1 currency's weakness is another's strength. It's pretty clear that it's currently the pound's weakness rather than the dollar's strength that has caused the current situation. I base that on the fact that the dollar hasn't moved that much against, say, the Euro. It's the perceived value of the pound that's the trigger.
I suppose that if the dollar lost it's present attractions, then you could see the pound move higher but it would be based on the weakness of the US economy rather than the strength of the UK.
For what it's worth (and it's not much more than a guess), I think that it will be a very long time before we see even $1.55 to the pound. I'd be a buyer at $1.50.
<blockquote id="quote" class="ffs">quote:Originally posted by Pudders
Just checked today (8th Aug) 1.91 to the pound!!! How low!!
We're not going until next April but want to get a good deal - I don't want to buy £2000 worth now!
Anyone got some inside information on the dollar?
Cheers
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I so wish this was the exchange rate today! I have everything crossed that it goes up to 1.50 by october. Anyone else think it might?
When we went 2 years ago it was $2 for a £1 now its like [msneek][msneek][msneek][msneek]
No chance....that is when I'm going, so it is bound be low, see my prediction of $1.26.
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