Pound still dropping

[Rjk]

Back down to 1.05 USD today - I never thought I'd see the day. I might start asking to be paid in euro soon

[Eric Cartman]

Re: Pound still dropping

I'd ask for chickens if I were you

[JamesWales]

Re: Pound still dropping

These things are moving very quickly and the market is very volatile.

As it stands, at lunchtime, the pound was about 1% down against the dollar (a big fall relatively speaking)

It's now up 0.25% on the day. So when RJK wrote this, he was correct. Now he isn't. By the time he reads this, he may be correct again!

https://tradingeconomics.com/currencies

The bigger picture, not withstanding the losses in recent days which are undoubtedly down to the rather (with hidsight) reckless and haphazard budget is the strength of the dollar. It is basically up about 10-25% year on years against every major currency and every currency in Europe....bar....the Russian Ruble.

Read into that what you will. But when people said Putin has Europe (or the west generally) over a barrel, they weren't entirely wrong.

https://tradingeconomics.com/currencies

[Taunton Blue Genie]

Re: Pound still dropping

Back down to 1.05 USD today - I never thought I'd see the day. I might start asking to be paid in euro soon

Best speak to your Eurologist.

[az city]

Re: Pound still dropping

The bigger picture, not withstanding the losses in recent days which are undoubtedly down to the rather (with hidsight) reckless and haphazard budget is the strength of the dollar.[/url]

No idea what that actually means.

It seems, once again, you are completely unwilling to fully acknowledge the part your beloved Tories have played in crashing to UK economy. Brexit, corruption and now bull****.

[Canton Kev]

Re: Pound still dropping

The bigger picture, not withstanding the losses in recent days which are undoubtedly down to the rather (with hidsight) reckless and haphazard budget is the strength of the dollar.

Damn, what a coincidence.

Personally I blame Labour

[Ninja]

Re: Pound still dropping

Is there a possibility that the economy has been deliberately crashed?
Serious question...
Would there be a benefit to someone, somewhere in doing this?

[the other bob wilson]

Re: Pound still dropping

Damn, what a coincidence.

Personally I blame Labour

Or it could be those Marxist market traders or the remainer ones.

[az city]

Re: Pound still dropping

Is there a possibility that the economy has been deliberately crashed?
Serious question...
Would there be a benefit to someone, somewhere in doing this?

Depends what you mean by "deliberately".

There are a few people who have made an awful lot of money around market movements that could easily have been predicted had they known in advance of some of the policy shifts.

I read somewhere that Sunak met with hedge fund managers before he announced his mad fiscal plans. Could be a complete fantasy but if it's true, the hedge funders would have gone straight back to their offices and shorted the GBP.

[Ninja]

Re: Pound still dropping

Depends what you mean by "deliberately".

There are a few people who have made an awful lot of money around market movements that could easily have been predicted had they known in advance of some of the policy shifts.

I read somewhere that Sunak met with hedge fund managers before he announced his mad fiscal plans. Could be a complete fantasy but if it's true, the hedge funders would have gone straight back to their offices and shorted the GBP.

I suppose this is almost precisely what I'm getting at.
I'm not blessed with knowledge when it comes to politics or the economy. I rather shamefully ignored both as a younger man, my priorities were laid elsewhere.
I'm reading a lot of speculation about how this crash literally may have been deliberate, and while I'm no expert in all things economic, I obviously do know when something starts to stink.

It does look like there's more to this than simply bad policy. Like someone somewhere is about to make a lot of money from "deliberate" mistakes.

[Wales-Bales]

Re: Pound still dropping

I suppose this is almost precisely what I'm getting at.
I'm not blessed with knowledge when it comes to politics or the economy. I rather shamefully ignored both as a younger man, my priorities were laid elsewhere.
I'm reading a lot of speculation about how this crash literally may have been deliberate, and while I'm no expert in all things economic, I obviously do know when something starts to stink.

It does look like there's more to this than simply bad policy. Like someone somewhere is about to make a lot of money from "deliberate" mistakes.

You can run a timeline back 3 years or more and you will see a pattern emerging. Then you can think of some possible endings, and see how you did when that time arrives. Most people are reactionary and they only respond to news cycles which last a few days at most, then they are onto the next big thing. You need staying power to succeed in this game

[JamesWales]

Re: Pound still dropping

No idea what that actually means.

It seems, once again, you are completely unwilling to fully acknowledge the part your beloved Tories have played in crashing to UK economy. Brexit, corruption and now bull****.

A curious post from you, not least because I literally just did acknowledge the markets reaction to the budget. So, an odd response, although pleasant as ever.

I shall clarify; Whilst there has been an immediate and significant market reaction to the budget, not least because it was unexpected and contained seemingly no analysis from the Office of Budget Responsibility, as well as some perhaps unwise policies funded by borrowing, it is the fact that the US Dollar is on a remarkably strong run. Some examples:

Year on year, the dollar is..

Up 36% against the Hungarian Forint
Up 29% against the Yen
Up 27% against the Swedish Krona
Up 24% against the Polish Zloty
Up 23% against the Pound
Up 22% against the Norwegian Krone
Up 20% against the NZ Dollar
Up 20% agsainst the Korean Won
Up 20% against the Danish Krone
Up 19% against the Euro

Seeing a pattern? Nearly all of these currencies are at multi-decade lows against the dollar. If you think this is just the pound, or imply as such, you are simply wrong. The only major or western currency the dollar is down against YoY is the Russian Ruble (Down 21%).

https://tradingeconomics.com/currencies?base=usd

Theres loads of articles about the strength of the dollar - here's four, with headlines such as:

"Strong U.S. dollar is wreaking havoc across pretty much every country" [Fortune Magazine]

https://au.finance.yahoo.com/news/3-reasons-why-the-us-dollar-is-strengthening-133156519.html

https://www.nytimes.com/interactive/2022/07/16/business/strong-dollar.html

https://fortune.com/2022/09/07/us-dollar-price-wreaking-havoc-across-pretty-much-every-country/

https://www.bbc.co.uk/news/business-63040797

Everyone acknowledges the budget was poorly handled and it remains to be seen what the impact on the economy will be, but your language is hysterical and frankly wrong. To pin it on Brexit is to wilfully ignore that the same thing in terms of inflation, energy prices and supply, currency depreciation, bond yield increases, slowing growth is happening nearly everywhere. Indeed, in terms of stock markets, PMI indicators and unemployment the situation is more serious elsewhere.

So thats why I said the bigger picture (over recent months) is about the strength of the US Dollar because it absolutely IS.

[Dave Blue]

Re: Pound still dropping

Is there a possibility that the economy has been deliberately crashed?
Serious question...
Would there be a benefit to someone, somewhere in doing this?

It’s certainly deliberate, it’s just they couldn’t have imagined the fall out. You know what’s coming next. To rectify the situation, it’s the end of public services - one of the ultimate aims of Brexit.

[az city]

Re: Pound still dropping

A curious post from you, not least because I literally just did acknowledge the markets reaction to the budget. So, an odd response, although pleasant as ever.

I shall clarify; Whilst there has been an immediate and significant market reaction to the budget, not least because it was unexpected and contained seemingly no analysis from the Office of Budget Responsibility, as well as some perhaps unwise policies funded by borrowing, it is the fact that the US Dollar is on a remarkably strong run. Some examples:

Year on year, the dollar is..

Up 36% against the Hungarian Forint
Up 29% against the Yen
Up 27% against the Swedish Krona
Up 24% against the Polish Zloty
Up 23% against the Pound
Up 22% against the Norwegian Krone
Up 20% against the NZ Dollar
Up 20% agsainst the Korean Won
Up 20% against the Danish Krone
Up 19% against the Euro

Seeing a pattern? Nearly all of these currencies are at multi-decade lows against the dollar. If you think this is just the pound, or imply as such, you are simply wrong. The only major or western currency the dollar is down against YoY is the Russian Ruble (Down 21%).

https://tradingeconomics.com/currencies?base=usd

Theres loads of articles about the strength of the dollar - here's four, with headlines such as:

"Strong U.S. dollar is wreaking havoc across pretty much every country" [Fortune Magazine]

https://au.finance.yahoo.com/news/3-reasons-why-the-us-dollar-is-strengthening-133156519.html

https://www.nytimes.com/interactive/2022/07/16/business/strong-dollar.html

https://fortune.com/2022/09/07/us-dollar-price-wreaking-havoc-across-pretty-much-every-country/

https://www.bbc.co.uk/news/business-63040797

Everyone acknowledges the budget was poorly handled and it remains to be seen what the impact on the economy will be, but your language is hysterical and frankly wrong. To pin it on Brexit is to wilfully ignore that the same thing in terms of inflation, energy prices and supply, currency depreciation, bond yield increases, slowing growth is happening nearly everywhere. Indeed, in terms of stock markets, PMI indicators and unemployment the situation is more serious elsewhere.

So thats why I said the bigger picture (over recent months) is about the strength of the US Dollar because it absolutely IS.

Nobody is arguing that the USD isn't appreciating. We are talking about the last week or so. Point out which of those currencies experienced the same % fall as the GBP against the USD in the last week. The strength of the USD has nothing to do with what is currently (as in now, not YoY) happening to the GBP.

Stay on topic and stop equivocating. Example: "[P]erhaps some unwise policies"? The Tories almost broke the UK financial system this morning. You wouldn't have had a pension if they had managed it.

(P.S. I am still waiting for the apology you owe me for falsely accusing me of calling people on here "fascists".)

[JamesWales]

Re: Pound still dropping

Nobody is arguing that the USD isn't appreciating. We are talking about the last week or so. Point out which of those currencies experienced the same % fall as the GBP against the USD in the last week. The strength of the USD has nothing to do with what is currently (as in now, not YoY) happening to the GBP.

Stay on topic and stop equivocating. Example: "[P]erhaps some unwise policies"? The Tories almost broke the UK financial system this morning. You wouldn't have had a pension if they had managed it.

(P.S. I am still waiting for the apology you owe me for falsely accusing me of calling people on here "fascists".)

Perhaps you should read more carefully what people write then AZ, because I quite clearly said that "the losses in recent days..are undoubtedly down to the rather (with hindsight) reckless and haphazard budget "

I was talking about the wider global economic situation which, notwithstanding the last few days are impacting nearly every western nation. You evidently didn't read it and just started shooting from the hip as per..