How far will Sterling be allowed to fall?

fishtastic

ruggedtoast wrote: »

Common sense would dictate that there wont be any more interest rate cuts to shore up sterling,

In general, interest rate rises increase the value of a currency not cuts.

Really2

!!!!!!? wrote: »

Err, have you noticed that the pound is down from about $2.00 or so at the end of July to $1.49 today



That's a 25% drop in 5 months, I call that 'taking a hammering'.

We are in "historical norms" the £ was overvalued and you know it. $2 to the £ is not historicaly normal.
It is hovering around $1.5 for the last month which is around the historical average.

Do you think the £ should be worth $2 and never change?

purch

the £ was overvalued and you know it. $2 to the £ is not historicaly normal.

$2.00 cannot be sustainable, ............all those shopping trips to NY and still having change from a tenner proved it !!!!

P.S. You used the word historical, which isn't strictly correct, and will ruin the argument as it'll get picked up and used to beat you over the head, whilst the fact that a rate of $2.00 is unsustainable will be conveniently forgotten

WTF?_2

Really2 wrote: »

We are in "historical norms" the £ was overvalued and you know it. $2 to the £ is not historicaly normal.
It is hovering around $1.5 for the last month which is around the historical average.

Do you think the £ should be worth $2 and never change?

I was merely correcting your claim that:

The £ is taking a hammering against the euro not the $.

The fact is that the pound has just fallen 25% against the dollar in five months or so. I'd call that 'taking a hammering'. It's also falling sharply against a basket of currencies not just the Euro and Dollar. Though I hear it's holding up well against the Zimbabwe Dollar.

Datasafe_2

If you take the data for the last 5 years then the pound averages $1.9




Not overpriced by any stretch of the imagination..............

Really2

!!!!!!? wrote: »

I was merely correcting your claim that:



The fact is that the pound has just fallen 25% against the dollar in five months or so. I'd call that 'taking a hammering'. It's also falling sharply against a basket of currencies not just the Euro and Dollar. Though I hear it's holding up well against the Zimbabwe Dollar.

:rolleyes:
I cant be @ssed !!!!!! but what is the difference in the last month.


oh nothing. (actualy slightly higher at $1.5)

You just want to discredit the fact we are now in a "normal" exchange rate value against the $ by using a year graph.
But why don't you do 20 years+? you do on house prices.;)

Really2

Datasafe wrote: »

If you take the data for the last 5 years then the pound averages $1.9




Not overpriced by any stretch of the imagination..............

Sorry but are most of the people on here in there early 20s, because i find it bizzare you see that as "normal"

Try this but, a bit hazy. Wonder why you did 5 y?;)

Generali

Really2 wrote: »

Sorry but are most of the people on here in there early 20s, because i find it bizzare you see that as "normal"

Try this but, a bit hazy. Wonder why you did 5 y?;)

GBP1=USD2 hasn't been normal since the pound fell from about $2.5 to $1.7 in a short space of time in the mid-80s.

handful

So this is the treasury response to the original question.

http://www.independent.co.uk/news/uk/politics/pound-to-be-left-to-its-fate-1067048.html

I still think the it could be the rescue of sterling that triggers the first interest rate rise rather than a fear of rising inflation.

WTF?_2

Really2 wrote: »

:rolleyes:
I cant be @ssed !!!!!! but what is the difference in the last month.


oh nothing. (actualy slightly higher at $1.5)

You just want to discredit the fact we are now in a "normal" exchange rate value against the $ by using a year graph.
But why don't you do 20 years+? you do on house prices.;)

I'm simply pointing out that the pound has indeed recently taken a hammering against the dollar - unless you count a 25% drop in less than half a year as nothing worth remarking about?