are we expecting the pound to drop further?

eDicky

ryan121 wrote: »

When article 50 is invoked and after the two year period we leave the EU. On both of these occasions expect panic and the value to sink like the titanic.

These two events are now more or less certain to occur, so their effects are already factored in to the current value of the pound on forex markets.

The vote in favour of Brexit, on the other hand, was an unknown/unexpected occurrence, which resulted in the immediate sell-off and loss in value of the pound when world markets realised with incredulity that the British had failed their big IQ test.

Any future movement in forex rates are, as always, affected by various conditions and occurrences that are not currently foreseen, or by changes in their chance of occurring. So, the OP's question can be answered by the toss of a coin just as effectively as by anybody's opinion expressed here or elsewhere.

(Edit: unless your name is George Soros, perhaps... )

Glen_Clark

eDicky wrote: »

world markets realised with incredulity that the British had failed their big IQ test.

English not British. Scotland voted Remain.

moneyfoolish

Glen_Clark wrote: »

English not British. Scotland voted Remain.

I thought Scotland was still part of Britain? If so, Britain did vote Remain!

hutman

Sterling's value is investors' view on May's government. Judging by her most recent hard brexit murmurings at the most recent Tory conference, I'd say sterling got more to fall.

That said, revelations about her views on Brexit at Goldman reveal a deeper conflict. The cynic inside me thinks they will go for hard brexit, sterling and economic data will be push them on the brink, and they'll use that as a lever for a second referendum. If that happens there must a political means to achieve remain at all cost otherwise we'll become the laughing stock of the world.

jamesd

Glen_Clark wrote: »

English not British. Scotland voted Remain.

The Scottish electorate weren't even asked whether Scotland should remain in the EU while the rest of the UK left. The recent referendum was what the UK should do.

coastline

forget it..

http://www.whatinvestment.co.uk/neil-woodford-sterlings-fall-rising-inflation-2552755/

jimjames

coastline wrote: »

forget it..

http://www.whatinvestment.co.uk/neil-woodford-sterlings-fall-rising-inflation-2552755/

Interesting, thanks.
If the currency were to weaken significantly further, that would be a worrying sign that the situation is worsening towards a crisis of confidence in the UK more broadly. Although I do not expect that to happen, it is not beyond the realms of possibility.

Thrugelmir

hutman wrote: »

That said, revelations about her views on Brexit at Goldman reveal a deeper conflict. The cynic inside me thinks they will go for hard brexit, sterling and economic data will be push them on the brink, and they'll use that as a lever for a second referendum. If that happens there must a political means to achieve remain at all cost otherwise we'll become the laughing stock of the world.

I'd say prepare for hard Brexit, not go for. Then anything less is a bonus. There's no second guessing 27 different member states and who might be their Government at the time. Simple too many variables to consider. Then at least people and business can also prepare likewise. In time it will all normalise anyway. Just a temporary blip.

Pincher

1 GBP=USD1.24301 right now.

Gold is dollar denominated, right?

So, Trump gets elected, and everything he says will cause big swings in US$. Gold is denominated in USD.

Hmmmmm....

Buy some gold ETF when GBP1=USD2.5?
Then sell at GBP1=USD1.6!

stringer_bell

in other news, my portfolio has dropped around 5 percent, especially american index and smaller companies funds, I was debating selling them due to 20 percent GBP drop, however I didn't.. sod's law

I hope they rise soon after the election