And this is relative to € (9%) and US$ (7%) - other countries with similar Covid19 problems.
This kind of fall would likely be news at any other time, but in the current climate it seems to have taken a back seat.
That fall, to me, implies the markets think that there's something more a foot in the UK, and specific to the UK, other than Covid19.
We're now within just a few cents of reaching the lowest value for the £ since the brexit vote - just 2 further days of £ vs $ falls at the same rate as last week would take us below it, to levels not seen since 1985. And back then, in 1985, that was only a brief dip from much higher, and quickly back up to much higher.
Perhaps the current fall is a result of the chancellor's spending spree, exacerbated by the need to spend on Covid19, which is now potentially tipping UK government borrowing into problem territory.
Are the currency markets now pricing in growing macro problems ahead that are particular to the UK?
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Sterling down 7% ($) and 9% (€) in 5 days
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- Lemon Slice
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Re: Sterling down 7% ($) and 9% (€) in 5 days
onthemove wrote:
We're now within just a few cents of reaching the lowest value for the £ since the brexit vote - just 2 further days of £ vs $ falls at the same rate as last week would take us below it, to levels not seen since 1985.
Holy bleep!
It's now almost in freefall!
When I started writing this it was down 3.6%
It's now down over 4% in the space of just a few minutes!
Now over 4.5% down... just 2 minutes later...
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- Lemon Half
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- Lemon Slice
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Re: Sterling down 7% ($) and 9% (€) in 5 days
Flight to dollars as this is seen as a safe haven.
Make of that what you will!
Make of that what you will!
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- Lemon Slice
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Re: Sterling down 7% ($) and 9% (€) in 5 days
Could the relative underperformance of sterling be related to the added problems the UK has this year in trying to do deals with the EU and other countries before the end of the EU transition period?
This must have been discussed elsewhere on TLF but I can't find it. A pointer required. Thanks.
TP2.
This must have been discussed elsewhere on TLF but I can't find it. A pointer required. Thanks.
TP2.
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- Lemon Half
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Re: Sterling down 7% ($) and 9% (€) in 5 days
TahiPanasDua wrote:Could the relative underperformance of sterling be related to the added problems the UK has this year in trying to do deals with the EU and other countries before the end of the EU transition period?
This must have been discussed elsewhere on TLF but I can't find it. A pointer required. Thanks.
TP2.
Many of us have been saying that down in PD. The Brexity types try to drown our voices out.
regards, dspp
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- Lemon Half
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Re: Sterling down 7% ($) and 9% (€) in 5 days
TahiPanasDua wrote:Could the relative underperformance of sterling be related to the added problems the UK has this year in trying to do deals with the EU and other countries before the end of the EU transition period?
This must have been discussed elsewhere on TLF but I can't find it. A pointer required. Thanks.
TP2.
If the hammering of the £ was a pure Brexit effect one would likely not also be seeing the Canadian and Australian $ getting similar treatment.
The arguments about this being a flight to the strength of the $US resonate most with me. If however, the Canadian and Australian $'s strengthen and the £ does not one can make it more of a Brexit causation.
Regards,
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