Quid to Drop Further in Value

Generali

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWkTImFCIfEU&refer=home

“I would urge you to sell any sterling you might have,” said Jim Rogers, chairman of Singapore-based Rogers Holdings, in an interview with Bloomberg Television. “It’s finished. I hate to say it, but I would not put any money in the U.K.”...
“Sterling has struggled due to the announcement of the new policy measures, in addition to reports of big losses in the U.K. banking sector,” Ashley Davies, a currency strategist at UBS AG in Singapore, wrote in a research note today. “We continue to see bearish sterling views being expressed through the dollar.”

Well Jim Rodgers is a bit hysterical at the best of times but I suspect we'll see the pound continue to fall.

iolanthe07

Have to stay in the UK for this year's holiday, then.

Really2

I have been looking at the £ yesterday and today.

It looks like all GB as done is say to the rest of the world our banks are full of debt don't touch us.
If that is what he was trying to do it worked (or is it a cunning plan to hold off defaltion buy !!!!!!ing sterling baldric style)

barrooo

1.3960 vs dollar as we speak. I wonder if Merv will try to put on any positive spin when he speaks later on tonight?;)

JasonLVC

Soros is the guy who makes billions from currencies. He is hardly going to tell people to copy him (and sell sterling) as he only makes money when he acts the opposite of what the majority are doing.

The Pound is taking a beating at present, it dips each time BoE drops interest rates or Gordon Brown opens his gob - but then it makes a gentle recovery thereafter.

I suspect the Eurozone is getting itself deeper into a recession and has been slow (so far) to act against it (a bit like the UK last year). At some point very soon, the ECB is going to have to drop interest rates again and when it does, the value of the Euro will drop markedly.

Back to Soros. If he tells everyone to sell Sterling NOW then he can buy it up tomorrow at a greatly devalued price (and the Pound is already under-valued). When the Euro takes a dive sometime in Spring, everyone will be rushing to buy Sterling again, Pound will go up against the Euro and Soros will have most of the money as he bought it from the pancked people he panicked earlier - at a bargain basement price.

It's a bit like those "How to make a million" books, why would anyone want to give their secret away and then face competition. Same with Soros, he's giving everyone a red herring here I think.

Generali

JasonLVC wrote: »

Soros is the guy who makes billions from currencies. He is hardly going to tell people to copy him (and sell sterling) as he only makes money when he acts the opposite of what the majority are doing.

The Pound is taking a beating at present, it dips each time BoE drops interest rates or Gordon Brown opens his gob - but then it makes a gentle recovery thereafter.

I suspect the Eurozone is getting itself deeper into a recession and has been slow (so far) to act against it (a bit like the UK last year). At some point very soon, the ECB is going to have to drop interest rates again and when it does, the value of the Euro will drop markedly.

Back to Soros. If he tells everyone to sell Sterling NOW then he can buy it up tomorrow at a greatly devalued price (and the Pound is already under-valued). When the Euro takes a dive sometime in Spring, everyone will be rushing to buy Sterling again, Pound will go up against the Euro and Soros will have most of the money as he bought it from the pancked people he panicked earlier - at a bargain basement price.

It's a bit like those "How to make a million" books, why would anyone want to give their secret away and then face competition. Same with Soros, he's giving everyone a red herring here I think.

Did I miss something? What does Soros have to do with anything?

Thrugelmir

With German Government bonds yielding over 4% and the BOE expected to cut rates further next month the reasons to buy sterling are diminishing.

In the future the UK Government are going to have to raise funds to finance their. At that point interest rates will rise and so will sterlings exchange rate.

JasonLVC

Well if you know your currency markets (which I'm sure you do), Jim Rogers set up Quantum with George Soros and they still advise about currencies openly. My post meant to say Rogers but in my mind the two are one of the same

Rogers 'predicted' the fall in the Dollar last year (or did he just put fear into everyone and then sit back as the Dollar dropped) as well as being the major winners the last time the Pound was devalued back in the 90's.

I'm not sure if these two are brilliant economists who can predict trends to an inch of accuracy...or just start trends with their scaremongering.

Generali

JasonLVC wrote: »

Well if you know your currency markets (which I'm sure you do), Jim Rogers set up Quantum with George Soros and they still advise about currencies openly.

Rogers 'predicted' the fall in the Dollar last year (or did he just put fear into everyone and then sit back as the Dollar dropped) as well as being the major winners the last time the Pound was devalued back in the 90's.

I'm not sure if these two are brilliant economists who can predict trends to an inch of accuracy...or just start trends with their scaremongering.

I didn't realise. Thanks.

Jim Rogers is a bit hysterical (remember the 'open the window' video?). He's done well out of the commodities boom.

JasonLVC

I wasn't being sarcastic Generali by the way, I'm aware of your posts and that they are of an economic nature - I seem to recall you are in banking so was just noting that I wasn't trying to tell you how to suck an egg so to speak.

But sorry for not making my post clearer.

Generali

JasonLVC wrote: »

I wasn't being sarcastic Generali by the way, I'm aware of your posts and that they are of an economic nature - I seem to recall you are in banking so was just noting that I wasn't trying to tell you how to suck an egg so to speak.

But sorry for not making my post clearer.

I didn't think you were being sarcastic. Sorry if my post came across as rude or anything.

Now you mention the JR thing I have a vague recollection of a mate saying the same thing. I used to check their margins at one bank I worked for as it goes. They were very quick to stump up more margin on the odd occasion we needed it. I wish all my clients had been so polite and prompt!