Just wondering if anyone's got any predictions regarding £ vs $.

 

It's dropped in value by 1/4, since last summer. It's now hovering around the $1.50 mark. With the US's economy the way it is, I can't imagine the value of the £ against the dollar would go down any further.

 

It picked up a little today, but I doubt it'll go back up to the 2:1 ratio we saw in and around the summer months.

 

The recent VAT cut seems to have done nothing to halt the decline of the currency and with more job cuts forecast and house prices still continuing to drop, will the £ devalue more against the $?

We are heading for a single world currency in the near future,if that happens it wont matter.i remember reading about a year ago about this its part of the new world order if you know about that,so in other words this credit crunch is enginered.

i always thought it was engineered for us to be in the euro, said it from day one

http://www.edgemediatv.com/article001_icke.html

click here and find all you need to know about the future and the big picture

If the BOE cut interest rates by up to .5% in the next week or so as is expected, I personally see the value of the GBP£ weaken in the short term. This is compounded by the latest unemployment statistics and the housing situation.

 

The US economy is in a dire situation right now, and the question is can it get any worse? Probably not, as the risk of deflation has not developed any momentum.

 

Over time the UK currency will strenghten again and quicker than if it was part of the Euro. Control of your currency is key to this. However getting back to the 2 : 1 ratio - I don't think you will see that this year. My personal opinion only.

You are correct chayden. Since writing your post, Sterling is further down. Dollar is now worth $1.37 against £1. Worst value I can remember for years and years.

The banking industry, is waiting for the new president to anounce the package on the rescue plan for the unemployed , and the package on the building program ie road & rail according to the sky buisness news this morning

Meanwhile our governemnt is working hard towards us joinging the Euro and making us think we have no choice or they will take the easy way out and introduce quantitative easing, at least then our cars will have a higher price tag !!

Ever dropped a stone into a pond??? thats the GBP/USD

 

Our company have just done predictions for the Gov.

 

Wont stop falling untill 2011 and will see growth big time 2013 ;o)

I work in one of the only Banks that hasn't been shafted big time by this. But then this bank is Spanish rather than English or American so I'm assuming the way the food chain works, Santander will start feeling pressure by the 2nd half of this year, just as the situation in England and US starts to settle, then we should see very small and slow rises of the pound v euro as the euro markets start to suffer. Not until 3rd or 4th quarter of 2010 will be start to stablise effectively enough to pull us out of recession and even then we won't fully recover for another 2 - 3 years after.

I work in one of the only Banks that hasn't been shafted big time by this. But then this bank is Spanish rather than English or American so I'm assuming the way the food chain works, Santander will start feeling pressure by the 2nd half of this year, just as the situation in England and US starts to settle, then we should see very small and slow rises of the pound v euro as the euro markets start to suffer. Not until 3rd or 4th quarter of 2010 will be start to stablise effectively enough to pull us out of recession and even then we won't fully recover for another 2 - 3 years after.

 

or

 

Wont stop falling untill 2011 and will see growth big time 2013 :tongue:

I work in one of the only Banks that hasn't been shafted big time by this. But then this bank is Spanish rather than English or American so I'm assuming the way the food chain works, Santander will start feeling pressure by the 2nd half of this year, just as the situation in England and US starts to settle, then we should see very small and slow rises of the pound v euro as the euro markets start to suffer. Not until 3rd or 4th quarter of 2010 will be start to stablise effectively enough to pull us out of recession and even then we won't fully recover for another 2 - 3 years after.

 

so do I, well at least I do now! cough! Santander's shares are all of the shop - maxed at about £6.60 last week, sat at around £4.50 this afternoon.

http://business.timesonline.co.uk/tol/business/economics/article5562539.ece

You are correct chayden. Since writing your post, Sterling is further down. Dollar is now worth $1.37 against £1. Worst value I can remember for years and years.

 

That was to be expected with the interest rate cut which I think was more severe than the .5% forecasted when I wrote that.

 

As a guide, interest rates are a fiscal method of controlling inflation. It's relationship to the currency value is that when the base interest rates are rising(in a stable environment) the country is doing well. As a result of the higher interest rate, investors convert their dominations to that currency to get stability and better interest rates. When rates are cut, they seek better returns and as we have seen over the last 6 - 12 months it has been into the Euro.

 

Interesting thing which was a major pointer for the dollar's fate which I read in early summer, was that for the first in history that the Federal Reserve went to market with their government bonds, they couldn'd find a willing investor!

 

If anybody wants an interesting slideshow on how the world changes over time and how dynasties / major traded world currencies change over time, and indeed everything changes and advances click on this :

 

or

 

 

One of my favourite thought provoking links that isn't of a Zed

Edited January 23, 200916 yr by chayden
hadnt listed the original clip

Based on the latest predictions of currency values made by the ECB, its likely that the £1 will be around the $1.50 for this year. Of course over the course of the year it will fluctuate above and below that market.

Thanks guys. :)