£ strongest major currency in the world in 2009

gozomark

DiggerUK wrote: »

Quickie, what do you see as a fair exchange to the $US

where we are now, in the 1.60's

DiggerUK

gozomark wrote: »

where we are now, in the 1.60's

Cool, at 1.60 I'm 22 pounds an ounce up, but at 1.69 I'm 74 pounds an ounce up. :j

Totally screwed if pog collapses under $860. :eek:

Go sterling, go. To da moon.

gozomark

people then start asking questions about just how far it can go and will the £ be the strongest currency in 2009 ? ..LOL

Basically the £ was grossly oversold 2008 and is now being bought back up to fair value. Expecting vastly more except against the Euro would not be fundamentally justified - agree. £ will probably remainthe strongest currency in 2009, as even if it goes nowhere from now to new year, its so far ahead already that it would take a big fall to lose its gain year to date.

:beer:

sabretoothtigger

hasnt gold in £ risen in the last 40 days. silver has I think
I havent got a chart or symbol for gold £ really

gozomark

does every thread have to be turned into one about gold ???

this is about currencies, and £ in particular. I've nearly given up on this forum a couple of times because of the gold bugs taking over evey other thread, and now its happening to this one.

DiggerUK

sabretoothtigger wrote: »

hasnt gold in £ risen in the last 40 days. silver has I think
I havent got a chart or symbol for gold £ really

I've bumped the gold thread with a reply. That's the proper place for my reply.

Gozomark,
Following forex is a crucial indicator for me, my interest in your thread was, and remains genuine.

tradetime

Whatever the cause of the strong rebound it is most welcome, let's hope it lasts for a while.

JoeCrystal

Just wondering, would the National debt of UK Government if it get too high or investors are no longer willing to buy Bonds, how would it affect the Pound Sterling? Also, How does the value of currency change in exchange market? It is like Supply and Demand or something else? I know that Pound sterling is good at the moment but I just want to know why it is so good at the moment

DiggerUK

Joe Crystal,
There is a body of opinion here arguing that sterling is returning to a more balanced position.

This is a piece by Liam Halligan from last weekends Telegraph that warns of dollar weakness as he sees it.

It does give you pointers to your question about government bond sales.

http://www.telegraph.co.uk/finance/comment/liamhalligan/5413107/Bond-vigilantes-set-for-rebellion-against-the-Wests-wasteful-ways.html

nrsql

JoeCrystal wrote: »

Also, How does the value of currency change in exchange market? It is like Supply and Demand or something else? I know that Pound sterling is good at the moment but I just want to know why it is so good at the moment

http://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp


It's a lot due to fear.
US dropped due to the mortgage crisis - but not by that much as it's big and has a manufacturing base.
UK's banking crisis and escalating debt and lack of resources frightened people so sterling dropped by too much.
This year we've seen a correction - and also probably gaining from lack of faith in other currenceies.

I think it's probably overvalued but people are looking to diversify to reduce risk. What happens now depends on who has the next crisis.