Pound at all time low? Well that was a lot of fuss about nothing...

Mottie

Mottie

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....it's back to how it was before old squeaky bum gloatingly started another of his UK/Tory bad news threads. Strange he's not been back on with the latest news. Not!


Pound returns to pre mini-budget levels​

The pound hit $1.12 against the dollar this morning, returning to the same level the currency was at before the mini-budget on Friday.
It comes after official data released earlier today showed the UK is not in recession, as had been previously thought.
That means that sterling has swung back from a low of $1.03 on Monday, after Chancellor Kwasi Kwarteng pledged there were "more" tax cuts to come on top of a £45bn package announced last week.
 
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No surprise really. The same people who made a lot of money on the pound falling will be making a lot of money on the pound rising. Life goes on.
 
I moved some usd to gbp earlier in the week. I still can’t believe the ER I got.
 
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Mottie said:
....it's back to how it was before old squeaky bum gloatingly started another of his UK/Tory bad news threads. Strange he's not been back on with the latest news. Not!


Pound returns to pre mini-budget levels​

The pound hit $1.12 against the dollar this morning, returning to the same level the currency was at before the mini-budget on Friday.
It comes after official data released earlier today showed the UK is not in recession, as had been previously thought.
That means that sterling has swung back from a low of $1.03 on Monday, after Chancellor Kwasi Kwarteng pledged there were "more" tax cuts to come on top of a £45bn package announced last week.
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Don't get too excited, Mottie
 
charliegolf said:
Yeah, but it cost £65bn of BoE buyback to get it there.
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Nah, BoE exchanged £65bn worth or reserves for £65bn worth of long term gilts. The gilts were originally for £65bn worth of reserves. One transaction cancels the other.
 
Cost of govt 'borrowing' going forward has increased though. Not good.
 
gone said:
Cost of govt 'borrowing' going forward has increased though. Not good.
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Stop issuing gilts, then you have no interest payments (and no dramas like the last few days) at all.
 
gone said:
And no pension funds? wasn't that the purpose of that issue?
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BoE stepped in to stop liquidity issues with pension funds due to them being on the wrong side of certain derivatives called LDI's which pension funds have been using to try to match their obligations.
If you are interested in an explanation I'll post a link.

Index linked Gilts were created for the private pension 'industry'.
 
wellyfish said:
BoE stepped in to stop liquidity issues with pension funds due to them being on the wrong side of certain derivatives called LDI's which pension funds have been using to try to match their obligations.
If you are interested in an explanation I'll post a link.

Index linked Gilts were created for the private pension 'industry'.
Click to expand...

Yes exactly, but what if they hadn't stepped in.
 
gone said:
Yes exactly, but what if they hadn't stepped in.
Click to expand...
Some private pension funds say 'bye bye' and lots of people's money gets hoovered up.

If ever there was an argument against the private pension 'industry', there it is.
 
gone said:
No surprise really. The same people who made a lot of money on the pound falling will be making a lot of money on the pound rising. Life goes on.
Click to expand...
The 1.03 only existed briefly and "recovered" as western dealing opened up. 1.02 rounded 1.12 now.

The news that no figures released until Nov 28 was announced fairly late..................................... see what happens next week. 0 I hope other than up more.
 
I’m looking forward to the Conservative party conference next week……theres gonna be a lot of glum faces.
 
Unfortunately I think the mortgage market and increased interest rates are here to stay? I'm not looking forward to the extra £300 a month I'm probably looking at on my mortgage next year.
 
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