The Great British Pound

[geosname]

It looks like the pound is on a steep downward spiral against other currencies, lowest in 12 months over a wide spread of countries.

May seem insignificant but it means the pound buys less abroad, prices rise and the pounds in the pocket deteriorate.

We could be heading for another dip, possibly a big one.

[toyahw]

Have you seen where the Euro has gone? Outrageous. It's a time of Dollar strength and Sterling is dragged down a bit by the UK's economic ties to the EuroZone. But still well up against the Euro. This is probably not a bad thing for the UK. It's kind of stuck in the middle between the surging Dollar (bad in the the long run for the US) and the plunging Euro (bad in the long run for Europe).

 

I wouldn't expect this trend to change for the next six months, until the Greek situation is clarified. Expect Dollar/Euro 1.1 by July. Pound Dollar around 1.48. (BTW most other currencies like the Thai ClagNut reflect more the Dollar, except for individual economice circumsances e.g. Russia).

[Tone]

Suddenly my pension has gone down by 8%. I'll never be able to afford to retire at this rate.

[The French Connection]

My pension plunged by 35% 6 years ago, and it's still trying to recover! :nailbiting:

[Bycarsbill]

Have you seen where the Euro has gone? Outrageous. It's a time of Dollar strength and Sterling is dragged down a bit by the UK's economic ties to the EuroZone. But still well up against the Euro. This is probably not a bad thing for the UK. It's kind of stuck in the middle between the surging Dollar (bad in the the long run for the US) and the plunging Euro (bad in the long run for Europe).

 

I wouldn't expect this trend to change for the next six months, until the Greek situation is clarified. Expect Dollar/Euro 1.1 by July. Pound Dollar around 1.48. (BTW most other currencies like the Thai ClagNut reflect more the Dollar, except for individual economice circumsances e.g. Russia).

 

A well argued assessment. The £/€ exchange has of course already risen strongly since last year and I share your view that it will now mark time until the outcome of the Greek election. The drop against the $ is of course, good news for exporters. The 'middle ground' you mention, is no doubt not a bad place to be with the various geo-political situations we are experiencing!