Why do you think it has a lot further to fall? GBP has been one of the best performing currencies of the past 12 months. It took a hammering against USD this week from 1.42+ to 1.378 due to underwhelming GDP data and revised inflation targets. As the economy has performed well since the Brexit announcement amd initial dive, the fx rate has risen. The biggest factor amongst many that drives fx rates are central bank rates and bond rates, this determines the inflows and outflows of currency purchases to an economy. After that it is political stability, then economic growth etc. US fed (1.5%) are much further along in the tightening cycle than the ECB (0%) and BOE (0.5%) and are planning 4 increases this year which is priced in in the current rates. When BOE begins normalising rates and it has to, GBP will rise again. I am assuming a soft Brexit and GDP targets will be met. GBP is undervalued and heading for 1.45 at year end. Unless there is an economic catastrophe, sterling and euro are heading north long term. A lot of uninformed bashing goes on here.
Everything is against the UK economy. You have weak, venal and divided parties both leading and in opposition. An archaic fptp electoral system in a country led by the media oligarchy, and a stupid, venal, racist, inward looking, self-entitled bunch of farah slack wearing baby boomer plebs who vote out of naked self interest, in the face of whom the govt is paralysed by fear. You have the fin techs leaving, with a gradual haemorrhage of the banks to follow. A nation wallowing in debt. A nation of shopkeepers which has lost the ability to manufacture, and has reared a self entitled swathe of fat, loud mouthed oafs who wouldn’t work in manufacturing anyway, preferring to protest in misspelt monosyllables about a dying baby they’ve never met. You have a country hijacked by an isolationist pack of navel gazing Neanderthals, stuck on a dank island in the middle of nowhere, burning friends and allies, when that country can neither feed nor warm itself. You have a generational crisis, with tuition fees , or anger about them, building a head of steam. A country dictated to by an elderly population who insist on borrowing off the backs of their grandchildren to keep themselves looked after by the very minimum wage slaves that they want to banish, the same bunch who refuse to sell the homes their grandchildren could never afford yet insist they are sheltered fed and treated by those same grandchildren.
The UK is fucked and fucked utterly. The only hope Scotland has is to leave, but they won’t as they are cowardly, greedy opportunists; for the North to be cut loose and left to the mercies of Europe. For Wales to be cut adrift in their heavily backed brexity heaven, which they can pay for for themselves for once, and for England
I’ll finish tomorrow. I’m tired
I’m not having a go mate but most of the stuff you have listed there is not going to affect the exchange rate negatively or at all. A worse place to live maybe but sterling is going north over the next 12 months.
Mate, it’s hyperbole verging on unhinged drama queen. If the UK is fucked you should pray for Spain, Portugal, Greece and your beloved Italy because they are in a far worse position economically. Don’t know why I’m bothering here, you’ll just do your usual play to the gallery anti-UK bias and destroy me with a classic oneliner.
Ah that’s a lovely rant. Eloquent, informative, funny and bitter all in one neat package. Bravo.
I think over 12 months it might rise or stay steady. Over 10 years though, if Brexit goes through, it’s hard not to see Sterling being whittled away.
That’s a belter!
Have you thought about making this into a musical?
Was that rant about the Limerick co board ?
Most of the stuff he has listed here? You mean the post he managed to write himself, full of original thought, full of intelligence, a soupcon of disappointment, a large dollop of anger.
Instead of the cut and paste shite you post.
just said on the radio that recruitment has gone off a cliff in britland
Come on man.
You can’t underestimate the UK’s ability to shoot itself in the head at any moment. More important again is the new foreign perception that it can be rash and self- destructive out of the blue. That’s a game changer.
Not saying Ireland’s great but we’re seen as more steady.
There was a 300 billion negative swing in FDI into the UK last year. 2016 was bolstered by a couple of mega mergers. Interesting as I know of so many companies buying into the UK market to try and hedge against Brexit.
Nothing I wrote is cut and paste. He has written emotional guff about little englanders and the woe is me brigade. The UK economy is doing fine mate, London is one of the leading financial services in the world and will continue to be. Just because you and a few others hate the Brits like 12 year olds, doesn’t mean their currency will collapse. The EU still have the PIGS banking and fiscal problems to resolve. Refute the points I raised, not more emotive nonesense. You can’t because you haven’t got a clue about this stuff. Why did the Aussie dollar take a hammering this week? Is it a laundry list like flattys? Google might help a little here.