Pound in biggest monthly fall against the dollar since 2016...

Status
Not open for further replies.
wellyfish said:
What effect is it having on you personally?
How is your life being materially affected?
Click to expand...
no more than anybody else, but a weak pound / strong dollar affects import prices, so indirectly to inflation. The very thing the mini budget was supposed to be addressing.

on a personal level it means I get less dollars for my pound when I travel
 
Sponsored Links
People seem to have forgotten the fall against the euro as well. 2.6% over 4 days.The fall started at the end of August, 6% since then,

No announcements on us obtaining more cheaper power yet. She just said I think I will issue more licenses. I assume that is for power generation. Maybe some N Sea. Who knows, I don't. So we pay back the subsidy loan when power is cheaper............ when will that be?
 
What does the pound slump mean for the UK? An easy explainer - for a simple soul like me it looks like the government is putting leeches on the body of a patient suffering from acute blood loss.
 
Sponsored Links
carmanmemoranda said:
no more than anybody else, but a weak pound / strong dollar affects import prices, so indirectly to inflation. The very thing the mini budget was supposed to be addressing.

on a personal level it means I get less dollars for my pound when I travel
Click to expand...
It can affect import prices for products priced in dollars (particularly oil etc.) and, directly, inflation. It's not a direct relationship.

For example, here's a sequence of fx shifts in USD/EU rate between Jan 2006 and June 2011 (there are multiple other examples which you can check for yourself):

Jan 06 - Mar 08: -28% (27 months)
Apr 08 - Feb 09: +18% (11
Mar 09 - Nov 09: -17% (9 m)
Dec 09 - Jun 10: +16% (7 m)
Jul 10 - Jun 11: -18% (12 m)

Check the inflation rates before, during and after these fluctuations in both USA and EU.

ajohn said:
People seem to have forgotten the fall against the euro as well. 2.6% over 4 days.The fall started at the end of August, 6% since then,
No announcements on us obtaining more cheaper power yet. She just said I think I will issue more licenses. I assume that is for power generation. Maybe some N Sea. Who knows, I don't. So we pay back the subsidy loan when power is cheaper............ when will that be?
Click to expand...
When a currency is being sold it pretty much drops against every currency i.e. the price of the £ drops against every other currency.

I think the Tories themselves have set a target of 95% renewable energy by 2030? There's no reason they couldn't ramp that up but, then again, they seem more interested in 'fossil' fuels, dont they.
 
Problem is, we don't produce much, very much a service economy.
Where do we get out stuff from? Oh yeah ... and they are the ones selling the pound (having previously invested in it) because it is no longer a good investment.

EVERYTHING will get more expensive for us, while at the same time inflation will mean our money will be worth less, and higher interest rates will push up mortgage and rents. Oh, and energy ....

1664181525339.png
 
It was 0.96, but the $ has backed off a bit in the last few day/hours. Those in the know are advising now, is the time to convert as its not expected to stay like this for long.
 
wellyfish said:
I think the Tories themselves have set a target of 95% renewable energy by 2030? There's no reason they couldn't ramp that up but, then again, they seem more interested in 'fossil' fuels, dont they.
Click to expand...
Ok take an imbecilic view to illustrate a point. The loans taken for subsidy need to be 10 years currently so that the renewable are available and cheaper. At that point consumers start paying it back.

Reality is that domestic subsidy will be for 2 years. Of late pundits are mentioning 10 year loans. They cost a bit more than 2 which has been mentioned.The question is what will the power costs be at the end of the subsidy? We pay more to recoup the loan in some way or the other,

Nuke doesn't become active that rapidly. Fracking and wind could be increased over a 2 year period.
 
motorbiking said:
It was 0.96, but the $ has backed off a bit in the last few day/hours. Those in the know are advising now, is the time to convert as its not expected to stay like this for long.
Click to expand...
Currency changes of this nature always tend to go too far and back off a bit towards the end which ever way they go, They should then settle down to more normal behaviour.

The USD GBP is actually a rounded 1.08 at the moment but falling. ;) I assume they use bankers rounding.
 
JP_ said:
Such a daft term. Something only the elitists would say.
Click to expand...
That's as well be but labour have not been in power for a long time now.? I think you know why.
And carmans just being an argumentative nob, I had it the cricket thread yesterday.
Tiresome at best
 
JP_ said:
Where do we get out stuff from? Oh yeah ... and they are the ones selling the pound (having previously invested in it) because it is no longer a good investment.
Click to expand...
You don't have to own £'s before you can sell them.

Anyone can sell the £, it's not difficult.

. Sign up with a fx broker.
. download their trading platform (or use their online platform if they have one)
. stick a bit of money in your trading account
. sign all the T's& C's (particularly the Margin Call stuff)
. start selling £'s
 
gant said:
So your not down at heel then, bit like a champagne socialist, your not on your own in that respect the labour parties crammed full of them.
Click to expand...
Except im not a left winger, or any party supporter. Im a floating voter, but dont let that free your judgement
 
gant said:
That's as well be but labour have not been in power for a long time now.? I think you know why.
And carmans just being an argumentative nob, I had it the cricket thread yesterday.
Tiresome at best
Click to expand...
Oh.

Because you were wrong ? Again !
 
Status
Not open for further replies.
Sponsored Links
Back
Top