Pound going through the floor.

Graham_Devon

wotsthat wrote: »

Yes we shouldn't miss any elephants in the room but Sterling fell suddenly on the 23rd June. Do you remember seeing any elephants that day or did anything strike you as being out of the ordinary?

I did notice that on the 23rd June, yes.

I also noticed a large drop when interest rates were reduced.

And I've noticed a rather large drop over the past 2-3 weeks.

The key bit for you here is, were not talking about what happened in June - were talking about what's happening now.

All I'm merely doing here is inviting anyone blaming this on everyone who voted Brexit (and theres a fair few of you on this very thread) to give us a reason, specific to Brexit, that has caused the recent, large falls.

I don't think "hopes", as per your previous answer is a true answer - if it were the case, all other indicators would be reacting too.

If people are going to blame Brexit, that's fine - just I'd like to see a reason other than "because I say so".

nkomp18

Euro now stronger than the pound at airports:

http://www.independent.co.uk/travel/news-and-advice/pound-value-brexit-sterling-latest-euro-dollar-flash-crash-currency-exchange-airports-a7349891.html?cmpid=facebook-post

Well this is going well, isn't it?

CLAPTON

nkomp18 wrote: »

Euro now stronger than the pound at airports:

http://www.independent.co.uk/travel/news-and-advice/pound-value-brexit-sterling-latest-euro-dollar-flash-crash-currency-exchange-airports-a7349891.html?cmpid=facebook-post

Well this is going well, isn't it?

what is the correct value for the pound

wotsthat

mrginge wrote: »

Of course, the flip side is that if you wanted to introduce a skills based work permit scheme then you would need to know what skills businesses required and what shortages we had of those skills.

Not only would that help to identify the roles and numbers that needed to be allowable through your immigration strategy, but you could target training towards those areas. That is much more efficient than generically funding training in all sorts of areas that in many cases result in the trainee finding out that there are no jobs or demand for their new skills.

I would like the state to spend its money wisely, not just chuck it up in the air and hope some of it fell in the right place.

What you suggest seems sensible to me but this isn't intended to be an efficient method of identifying skills shortages. The proposal is intended to shame companies acting perfectly legally into acting illegally.

Filo25

Graham_Devon wrote: »

I did notice that on the 23rd June, yes.

I also noticed a large drop when interest rates were reduced.

And I've noticed a rather large drop over the past 2-3 weeks.

The key bit for you here is, were not talking about what happened in June - were talking about what's happening now.

All I'm merely doing here is inviting anyone blaming this on everyone who voted Brexit (and theres a fair few of you on this very thread) to give us a reason, specific to Brexit, that has caused the recent, large falls.

I don't think "hopes", as per your previous answer is a true answer - if it were the case, all other indicators would be reacting too.

If people are going to blame Brexit, that's fine - just I'd like to see a reason other than "because I say so".

The falls of the last week seem to be very much driven by the fact that we now have certainty that Article 50 will be invoked reasonably quickly, and it appears highly likely that we are going to have a Hard Brexit, with all that entails

You combine that with the government seemingly taking a more populist, less business friendly approach and its hardly surprising that Sterling is coming under considerable pressure.

Lokolo

Graham_Devon wrote: »

I did notice that on the 23rd June, yes.

I also noticed a large drop when interest rates were reduced.

And I've noticed a rather large drop over the past 2-3 weeks.

The key bit for you here is, were not talking about what happened in June - were talking about what's happening now.

All I'm merely doing here is inviting anyone blaming this on everyone who voted Brexit (and theres a fair few of you on this very thread) to give us a reason, specific to Brexit, that has caused the recent, large falls.

I don't think "hopes", as per your previous answer is a true answer - if it were the case, all other indicators would be reacting too.

If people are going to blame Brexit, that's fine - just I'd like to see a reason other than "because I say so".

I think it is due to Brexit. Things did start to recover from the vote but the currencies have not been doing so great.

Over this time there's been a bit of back and fourth about whether Article 50 will be triggered or not. Just under a week ago May accounced the date.

A lot of investors, and high net worth individuals likely have a lot in different currencies and investments in overseas currencies. They won't want to sell all at once, more like drip feed away from it. The more this happens the more it falls, and as you said, there have been a lot of large falls over the last few weeks. This is more than likely investment firms worrying about even more currency falls when we leave the EU.

The economy is doing well, so no reason that being the cause. Although I agree people shouldn't be saying "Oh its because of Brexit" without any real reasoning, there isn't actually any other influences that could be causing it. It is still in the headlines, people will still have investments in other currencies and they will be worried about the future.

I doubt Brexit is the only contributor towards this fall, but it's likely to be the main culprit and is an issue still, months later after the vote.

Thrugelmir

Lokolo wrote: »

The economy is doing well, so no reason that being the cause.

Fundamental issues still remain. As far as foreign investors are concerned we spend more than we earn. To keep buying the debt that are going to want to see the budget deficit cut. Falling exchange rate adds imported inflation to the mix.

[Deleted User]

TrickyTree83 wrote: »

You really are a prize muppet.

ruggedtoast wrote: »

And you are a prize xenophobe,

Has anybody heard the joke about what one numpty said to the other numpty?

michaels

The govt announced a complete change of direction in fiscal policy from aiming for a zero deficit and austerity to something much loser and this resulted in a fall in the currency just as everyone who argued for a sound fiscal policy had always said would happen if the market lost confidence that the govt was concerned about the level of debt. @(For example this was exactly the argument the Tories used against Labour in the last GE campaign, a loss of confidence in the govt over fiscal policy as labour were suggesting that austerity could be abandoned would lead to GBP weakness and eventual interest rate increases - looks like they were right)

Brexit is just a smokescreen for what is really driving GBP.

Don't forget economic theory predicts a 'J' curve effect from a currency devaluation so the balance pf payments is likely to look pretty scary for the next 12-18 months....

Nick_C

Just to get away from the puerile bickering and name calling for a second.

Yes, the pound has been devalued by 15% or so since June 23rd.

This is excellent for the economy.

It makes our exports cheaper. It makes imports more expensive. It helps British Business and will halp to reduce our balance of trade deficit.

It will be inflationary, which is not necessarily a bad thing.

For Joe Public, the biggest effect will be to make imported goods and foreign holidays more expensive - too expensive for many. People will spend their money in the UK instead.

As the £ plummets, the FTSE has gone through the roof. Good for share holders, including anyone in a pension scheme.

The pound has been this low before. The world didn't end.

I think we will probably have a weak pound for the next five years.

But once we have left the EU and the world sees we are thriving, when international companies stay here and move here because of the low tax base and light regulatory touch, when the economy continues to grow in defiance of the Prophets of Doom, the £ will get stronger again.