Changing pounds to use in future

neil324

Thanks, you got me thinking about the Euro TC.

purch

It seems to me the BOE will accept a fall in Sterling.

I think thats more like....the Bank has learned at it's cost not to target the value of Sterling too aggressively.

The contrary view would be that the market has priced in much of the bad sentiment towards Sterling, and that it will not fall much further. You could also think that much of the rate hike talk from the ECB is no more than posturing and that they are unlikely to act on the threat.

When you are based in the U.K. it is very easy to get dragged into thinking the worst about the currency, and not seeing the full picture.

Sterling has a history of following periods of weakness with surprise rallies.

Personally I think GBP has fallen too far against EUR.

P.S. I am positioned this way via a couple of options trades, so I'm 'talking my book'.

alphason

I have live here in Thailand since Jan 2007.

You will get a much better rate here than in the UK. Last week I withdrew from my UK Nationwide flex account and got 65.8 baht to the pound. It has just gone up a bit after reaching a low earlier in the year of 61, when I first came here I was getting around 72.

If you don't have a flex account from Nationwide, My tip is open one and pay in your holiday money and withdraw through ATM's here with no charges or currency loading. Its the best and cheapest way.

Enjoy your trip!

tradetime

purch wrote: »

The contrary view would be that the market has priced in much of the bad sentiment towards Sterling, and that it will not fall much further. You could also think that much of the rate hike talk from the ECB is no more than posturing and that they are unlikely to act on the threat.

That is very possible on both counts. the Eurozone has been suffering as a result of the weak US$ and it is possible that they are trying to force the FOMC's hand, though history wouldsuggest that is a dangerous game. I just have the feeling Trichet could be single minded and dogged enough to go ahead with a raise. On the other hand it is likely to cause countries such as Spain, Greece, and the newer eastern block countries significant trouble ahead.

purch wrote: »

When you are based in the U.K. it is very easy to get dragged into thinking the worst about the currency, and not seeing the full picture.

Sterling has a history of following periods of weakness with surprise rallies.

Personally I think GBP has fallen too far against EUR.

P.S. I am positioned this way via a couple of options trades, so I'm 'talking my book'.

Fair play good luck with that.