£ recovers to 1.095 v € : edit now 1.113

gozomark

http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/currency/11/13/intraday.stm

interest rates cut by expected amount, yet £ rises immediately - suggests to me alot of traders are still short, hoping for a pull back, didn't happen, so short covering going on

purch

anyone still running long € v £ positions ?

The drop below 1.15 became very much a momentum trade, with people piling in as it was obvious they could push GBP lower.

It clearly 'spooked' a few people into thinking about moving themselves out of Sterling.

I hope they listened to those on here who tried to explain what was happening in a reasoned and well thought out way, and didn't actually follow through with such a course of action.

rich68

Looks like the pound is coming down again but I suppose it could be temporary of course.

I earn in CHF and didn't change any of my savings back to GBP because I live in the Eurozone - CHF/EUR seems to have been fairly stable for the last couple of months.

proplusplus

can anyone provide a bank of england link or another link which shows the effective current exchange rate? i've used Xe.com - but i wanna know BoE 'live' rates.

£/€


thanks

proplusplus

gozomark

live rates have nothing to do with the BoE, but they do publish official closing rates - how live do you want ? is a 5-10 minute delay OK ?

purch

but i wanna know BoE 'live' rates

Probably a good idea, cos non of the traders on the BOE floor (in my experience) have a clue what the real market is :eek: most of the time !!!! (they used to throw a good in-house lunch though)

gozomark

anyone still long € ?

purch

I was talking to my old "coffee boy" this afternoon (he's now the Treasury Manager)

Apparantly the "talk" now is that if the EUR doesn't make new highs anytime soon against GBP, it'll be back to 1.25/1.30 by the end of the month.

neas

didnt understand why we dropped so much

EU is in for recession too and parts of it are in worse order than UK.

tradetime

purch wrote: »

The drop below 1.15 became very much a momentum trade, with people piling in as it was obvious they could push GBP lower.

It clearly 'spooked' a few people into thinking about moving themselves out of Sterling.

I hope they listened to those on here who tried to explain what was happening in a reasoned and well thought out way, and didn't actually follow through with such a course of action.

Totally agree, because people see themselves as buying money when they change their Sterling into some other currency I don't think the risk they are taking registers in the same way as if you told them to buy equities, or bonds, or some other asset class. What people need to realize, is that in doing this they are speculating in a market just like any other and are taking all the risks that come with that territory. The "death" of Sterling is pronounced everytime it moves to a level lower than has been seen for some time. Sure some will get lucky, and make a few quid, but the majority will lose out. The absolute last thing people want to be doing is having a "punt" in the FX market with their hard earned savings.