Thread: Financial shock for those holding British Pounds

^Yep - and I have bookmarked it for posterity

Originally Posted by good2bhappy

LSD bring back the old days

..and the colours!

Tex is just joking (maybe?), but he is funny sometimes.
For me about the only small upshot is I get some $ income from overseas so at least that means a better exchange rate.
I hope for when I hit LOS in winter time things will swing up again.
Here's to hoping

Originally Posted by Thormaturge

Sterling is long overdue for a drop against the Dollar, but more to the point the Baht is overdue for a drop against everything.

but more to the point the Baht is overdue for a drop against everything Exactly. And why is it not happening.

When it gets back to a reasonable level of 1.5-6, I'll start to buy property there again.

Originally Posted by prufrock

Originally Posted by Thormaturge

Sterling is long overdue for a drop against the Dollar, but more to the point the Baht is overdue for a drop against everything.

but more to the point the Baht is overdue for a drop against everything Exactly. And why is it not happening.

Bank of Thailand buying baht perhaps. It's what they did in the ninties until they ran out of money.

WHOOOOOOO HOOOOOOOO !!!!!!!!!!!

I get paid in USD, have got them sitting in an account waiting for the day the rate makes them worth changing. My company gave me the option of switching to sterling at the current rate 3 weeks ago. 0.504 or 1.984. Told them to stuff it. Why lock myself in at the bottom?

Spoke to my Dad, they think it'll go lower, I'll start thinking of cashing once it hit's $1.70, though I remember holidaying in the USA at $1.19 many years ago.

Thai Baht was 44 when I first came here, but it went down to 37.5 a few years later, and up as high as 93. Don't ever change sterling to THB so that one doesn't worry me.

Fall Sterling Fall!!

As an accomplished Anglophile, I can assure you the pound's decline is due to very poor manners, retarded leaders, shit cars and general dumb ass disease. The precipitous decline has also been attributed to shit food and poor dental hygiene.

You missed out fat ugly beer swilling birds as well.

Maybe you guys will catch a break here

"Thai Baht Set for Weekly Drop as Slower Growth May Damp Demand

By Shanthy Nambiar

Aug. 15 (Bloomberg) -- Thailand's baht was poised for its fourth weekly decline on speculation slowing economic growth will curb demand for the nation's assets.

The baht extended this month's loss to 0.7 percent after a finance ministry official yesterday said growth in the Southeast Asian economy may weaken further in the second half of the year. Global funds have cut their stock holdings on concerns political turmoil will delay policies to boost growth.

``The currency will be affected by the stock market'' outflows, said Carol Chan, a currency analyst in Hong Kong at CFC Seymour Ltd. ``Politics is sapping investor confidence. In the near term we could see a little bit of depreciation in the baht.''

The Thai currency fell 0.2 percent to 33.78 per dollar as of 10 a.m. in Bangkok, according to data compiled by Bloomberg. It has declined 0.2 percent this week. The currency may trade between 33.60 and 33.90 next week, Chan said.

Overseas fund managers sold $191 million more Thai stocks than they bought this week, according to data compiled by Bloomberg.

Thailand's economic growth slowed to 5.7 percent in the second quarter and that may give the central bank the opportunity to lower interest rates, Finance Ministry spokesman Somchai Sujjapongse said yesterday. The economy expanded 6 percent in the first quarter.

The nation's Supreme Court issued arrest warrants for former Prime Minister Thaksin Shinawatra and his wife after the couple fled to London and failed to appear this week before a court on corruption charges.

There have been anti-Thaksin street protests since May, with protesters claiming current Prime Minister Samak Sundaravej is his proxy.

To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1[at]bloomberg.net.

Last Updated: August 14, 2008 23"

Originally Posted by ray23

The currency may trade between 33.60 and 33.90 next week

I see it being at the upper end of that scale. For once a decent prediction from the Thai camp. It might even see 34.05 if we're lucky.

Anything above the 78 line on this chart should give us 34baht plus to the dollar

linky

Bloomberg is already showing 33.81. What is pound doing against the baht?

^62.85. It slipped again against the Greenback to 1.857...

Pound Declines 11th Day Versus Dollar, Sliding for Fourth Week


By Andrew MacAskill and Kim-Mai Cutler




Aug. 15 (Bloomberg) -- The pound slid for an 11th day against the dollar, the longest run of declines in at least 37 years, on speculation a recession will force the Bank of England to cut interest rates.

The U.K. currency was headed for its biggest weekly drop since March 1995 after Bank of England Governor Mervyn King said two days ago there was a ``chill in the economic air'' and a report showed unemployment climbed in July by the most in almost 16 years. Growth is being hurt as tourism flags and tax receipts fall. The pound tumbled 6.5 percent since July 31.

``These are ferocious moves,'' said Simon Derrick, chief currency strategist in London at Bank of New York Mellon Corp. ``There has been a fundamental shift in thinking.''

The pound dropped 0.8 percent to $1.8554 as of 9:14 a.m. in London, from $1.8698 yesterday. The 11-day run was the longest since at least January 1971. The currency, poised for a 3.4 percent decline in the week, tumbled to a more than two-year low. The pound was at 79.37 pence per euro, from 79.28 pence.
Britain's currency may recover to $1.90, though longer term it should still be sold against the dollar, Derrick said.

The U.K. economy will expand about 0.1 percent on a year-on- year basis in the first quarter of 2009, compared with a previous prediction of 1 percent, according to central bank forecasts published two days ago. Growth has sputtered as house prices plunge. The property market came to a ``virtual standstill'' in July, the Royal Institution of Chartered Surveyors said this week.

The pound is falling because Mervyn opined a few days ago that despite the sharp rise in inflation caused by food and energy costs he considered that the " core " rate was in fact stable. Notwithstanding this specious nonsense he suggested that there may be latitude for a reduction in current rates by the end of the year.

This is of course absurd and he knows it but in a sentiment ridden speculative world it had the desired effect. Trashing the pound in the hope that recession will somehow be staved off whilst still maintaining interest rates at a level that supposedly lends credibility to his fight against inflation is him keeping his balls in the air. The truth is inflation everywhere is kicking in and recession is inevitable. The pound falls too far and inflation will simply increase. Any sentient being would increase rates another half to one point but we live in different times it seems

King is struggling under pressure from Brown who is increasingly becoming more deranged by the day.

^
I think the UK will do anything at present to avoid raising interest rates further as the banking sector is already on its knees without even more mortgage arrears and repossessions.

US rates are comparatively low and the Fed still has latitude to inrease them if necessary. The UK cannot do so without causing financial ruin and may be forced to reduce rates to avoid recession.

It looks as though the US is coming out of the banking crisis in better shape than the UK.

FWIW Alistair Darling is looking like he could be the worst Chancellor of the Exchequer in living memory. Certainly the only one I can recall who has had to reverse his own policies before delivering his first Budget. At least we know Northern Rock will survive the banking crisis, even if it has no customers left and everything else goes under.

Remember the Us was the first one in and most likely be the first one out.

Originally Posted by Thormaturge

FWIW Alistair Darling is looking like he could be the worst Chancellor of the Exchequer in living memory.

Hardly surprising, given that he takes his insructions from (and tries to emulate) the twat next door.

UK super OwNeD, no GDP growth

BBC NEWS | Business | UK economy comes to a standstill

^Worse than that actually, when you take into account that the GDP deflator is a blatant lie (and has been for the past 2-3 years), actual UK growth probably stands at -2% right now.

Originally Posted by bkkandrew

Originally Posted by Thormaturge

FWIW Alistair Darling is looking like he could be the worst Chancellor of the Exchequer in living memory.

Hardly surprising, given that he takes his insructions from (and tries to emulate) the twat next door.

A tad unfair.

Chap can only play the hand he has been dealt and it's hardly his fault that the deck is light and he is amongst company drinking the dregs up in the last chance saloon.

Hapless might be a more accurate term.

The real nigger in the woodpile is of course Blair whose stench of stale economic fart still permeates the air and taints all those buffoons without the sense to quit the crime scene that is now Britain.

And still GBP falls:

Sterling hits 2-year low vs dlr, 12-yr trade-weighted low


LONDON, Aug 26 (Reuters) - Sterling sank to a two-year low against the dollar on Tuesday after a surprisingly weak reading of German business confidence bolstered the view that Europe, including the UK, is in increasingly in deep economic trouble.

Sterling's slide against the greenback, which hit its highest level of the year against a basket of currencies, pushed the trade-weighted pound to its lowest since October 1996.

These moves earlier in the European session, enough to mostly shrug off a later dollar lurch lower as oil rebounded $5, were triggered by the slump in the Ifo index of German business confidence to a three-year low. See [ID:nLQ231966].

Figures also out on Tuesday showed that German consumer confidence hit a five-year low, adding weight to the view that Germany and the euro zone may be edging closer to recession.

As the euro zone is the UK's largest trading partner and export market, this is potentially bad news for sterling and an imbalanced UK economy over-reliant on consumption and imports.

Continued here:

Sterling hits 2-year low vs dlr, 12-yr trade-weighted low - Forbes.com

...is in increasingly in deep economic trouble.

Reuters, don't they own a grammar checker?

I have just recceived my USD statement from my bank in Jersey.

They put the amount in USD and a Sterling equivelant.

The exchange rate used was 1.8384USD to 1GBP.

May it keep falling.