How far will Sterling be allowed to fall?

Really2

Surely if it does stay like this for a long time we are going to look a very attractive bet for companies looking to set up a manufacturing base to sell in to europe (I would use cars but perhaps not a good example at the moment.;) )

Datasafe_2

I did 5 years cos that is what I consider recent.

£1 = $2 is the accepted historical norm. The whole thread was about the recent depreciation in the pound. Data further back that that just isn't relevent really.

Nor is data from the past month only:rolleyes:

Really2

!!!!!!? wrote: »

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?

!!!!!! we did the same on oil and you were right about that also.;)

lets leave it there i clearly said we will allow a drop against the euro, but will want to stay within "normal" relms with the $.
We are in normal not low trading or record low with the $.
If you want to point out that somthing as fallen from record 16 year highs to normal levels thats up to you.

Perhaps house prices should not correct from record highs.:D

Generali

Really2 wrote: »

Surely if it does stay like this for a long time we are going to look a very attractive bet for companies looking to set up a manufacturing base to sell in to europe (I would use cars but perhaps not a good example at the moment.;) )

Perhaps. UK workers aren't very productive by the standards of most industrialized countries. In the past that was ok for producers as UK workers were also cheap so their wages reflected their productivity.

Now the minimum wage has put a floor on wages. Clearly it's not worth paying someone GBP5.xx/hour to add GBP4/hour of value. I would guess that former Eastern Bloc countries with stable political systems could do well.

All other things being equal though you are right of course.

Really2

Datasafe wrote: »

£1 = $2 is the accepted historical norm.

Nor is data from the past month only:rolleyes:

The reason for the last month is we have fallen agains the euro in the last month.

Read my original post to see what i am on about.

keeping with normal trading of the $ is more important than the euro. The euro is strong against the £ and the $.:rolleyes:

Really2

Generali wrote: »

Perhaps. UK workers aren't very productive by the standards of most industrialized countries. In the past that was ok for producers as UK workers were also cheap so their wages reflected their productivity.

Now the minimum wage has put a floor on wages. Clearly it's not worth paying someone GBP5.xx/hour to add GBP4/hour of value. I would guess that former Eastern Bloc countries with stable political systems could do well.

All other things being equal though you are right of course.

I would agree on the workers but I think it was more like bad mangement (honda, nissan in the UK and productive now look at UK brands:))

My point is it would have to be a non EU country due to the euro strenth but as you said stable eastern block, there are not many stabel ones not using the euro that would also welcome possible US firms etc.

purch

£1 = $2 is the accepted historical norm

By whom ??

Generali

purch wrote: »

By whom ??

A half crown (2 shillings) used to be called a half dollar as they were about the same size and worth broadly similar amounts. I think that under the Gold Standard a GBQuid was worth about USD4.55.

Datasafe_2

purch wrote: »

By whom ??

Anyone with a memory for these types of things

Datasafe_2

Really2 wrote: »

Read my original post to see what i am on about.

keeping with normal trading of the $ is more important than the euro. The euro is strong against the £ and the $.:rolleyes:

So now you are saying the Euro is overpriced?