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British Pound is at the lowest level since 1985 at 1.33 USD/GBP.
by Johnie 10y ago
British Pound is at the lowest level since 1985 at 1.33 USD/GBP.
- mathgenius 10y agoI wonder how many people would change their mind now because of this. If the pound keeps tanking, perhaps the market will end up forcing a bremain. Once again the financial markets behaving like a psycho bitch. Do you remember that one girlfriend that you knew was a bad idea but you just couldn't help yourself?
- fixxer 10y agoWell, that rate also puts a floor under a lot of domestic manufacturing (see how it has worked for China?), so a little bit more complicated that "gee, Miami is so much more expensive now."
- Johnie 10y agoExactly. Low currency is great for manufacturing.
- newrotik 10y agoNot only manufacturing. It will become effectively cheaper to hire people in the UK from outside. We had a (too) strong Swiss franc for years now, and it's been a bane for businesses/economy.
- kartickv 10y agoIt will help British industry, while hurting savers, so maybe it's more a transfer of wealth than an overall benefit or loss?
- guitarbill 10y agosadly it's also become much more difficult to hire people from outside. also, isn't more immigration the opposite of what the leave campaign voted for?
- fixxer 10y agoLittle more nuanced than that...
- Tomte 10y agoUnfortunate that Britain has been deindustrialized over the last decades.
- jacquesm 10y agoYes, it is. If you're a manufacturing country. And the UK hasn't been one for quite a while now, most industry has moved out to other countries (former Soviet satellites and Asia).
- mathgenius 10y agoYeah, and we mustn't forget all those folk from miami who will now go on holidays to england. It's going to be chaos!
- rodgerd 10y ago80% of the cars made in exit-voting Sunderland are there for export to the EU. They will e subject to import barriers. Do you imagine Nissan will be chanting "Rule Britannia" and eating that loss, or do you imagine they'll be moving the bulk of their manufacturing capacity to one of the Eastern European countries that already has a solid car making capability?
- xienze 10y agoThe thing to remember about currencies is that they don't move under the guidance of some magical force. Currency markets are literally people converting from one currency to another 24/7. Fear and uncertainty, whether warranted or not, is what rules the market, and makes it ripe for speculation. I haven't done Forex in quite some time but if I were, you bet your ass I would've been out there shorting the GBP like no tomorrow as the poll results started inching towards "leave" because of all the doom and gloom scenarios that have been floated about endlessly -- it logically follows that other people would be doing the exact same thing. Remember, this won't even take effect for another two years or so. Literally nothing about UK or the GBP has fundamentally changed as of this moment, and yet the currency has been shorted as if the UK has simply snapped its fingers and is, as of this moment, no longer in the EU. What you'll see in the coming days is an upward movement. Shorts are going to take their profits, which is going result in GBP buy orders, which is going to squeeze shorts, which will lead to more GBP buy orders. Will the GBP go back to its value as of yesterday? No. But it won't remain down 10% either. Bank on it.