Pound against the dollar

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Mudball

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from the Sunday Times -

View attachment 44510
understandable.. but unfortunately, not surprising. We are seeing the shift towards a US style politics wherein folks like Nancy Peloski and co are involved in insider trading and it is deemed ok. It is so rampant, that someone has launched 2 ETFs that mirror the buying by Dems and GOPs..

Liz is already said that one of her advisor is not getting paid directly but via some lobbying group. Kwasi is/was reportedly an advisor with Crispin who shorted the GBP during Brexit & the budget.
 

Mudball

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Apart from my original comment being a slightly sardonic remark, from what I can see, the Euro (which has never been particularly strong against either the GBP or USD) has fallen around 3c in the last 45 days or so. In the same period GBP has fallen closer to 20p.

Like many things direct comparison between the Euro and GBP is not really straight forward as you would need to assume a similar starting point (to relative strength) against the target (in this case USD).

As @rudebhoy rudely pointed out.. both are down, but have a look at the GBP/EUR comparison
 

Mudball

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We have a reasonable sized dollar invoice to pay at work today ?. We will be talking to the supplier to see if we can delay it a few days and hope for a bounce back. Otherwise it's a major hit on profit for us. Not good for business and ultimately not good for consumers as prices will need to go up again to compensate.

This is why we need to buy things locally... :)
 

Lord Tyrion

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This is why we need to buy things locally... :)
Not always feasible sadly. This particular product is either made in China or the US, both selling in dollars. It is not made anywhere else in the world. Start up cost for machinery to produce, lack of major volume in the European market and ultimately cost means that it is not viable to produce here. I'd love to avoid freight delays, currency exchange rates etc and buy locally but it is not always possible.

As a concept, going forward, you are absolutely right of course.
 

Mudball

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Sunak must be feeling smug at the moment

FdkguT-WAAExpmV
 

WGCRider

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Couldn't agree more. BoE have just one tool to curb inflation and that's the increase of interest rates however, as you point out, this isn't driven by consumer spending it is global factors.

That's not entirely true - it has at least 2 other options but they are even more unappealing. It could buy government dept - but nobody wants to do that now. The interest demanded to buy UK government debt has increased 8 fold in the last month. Alternatively it could sell foreign currency reserves like the Japanese did last week - but it's not in a position to do this either.

In effect they are trying to drive a car but the kids keep grabbing the steering wheel. It's all an entirely predicable result of a failure of government policy. If they hadn't made it their plan to ignore experts somebody would have told them.
 

pauljames87

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the ones i feel for (just looking out the window as the windows are cleaned) are the window cleaners, then the gardeners (looking over the back) and ofc cleaners etc

how many people will look to stream line their budgets and cut these out which is vital income to those
 

road2ruin

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the ones i feel for (just looking out the window as the windows are cleaned) are the window cleaners, then the gardeners (looking over the back) and ofc cleaners etc

how many people will look to stream line their budgets and cut these out which is vital income to those

I'll put my hand up here! At present we have a window cleaner, cleaner (once a fortnight), a dog walker (once a week) and in all likelihood all of these will be going as we're due to re-mortgage next year and our increase payments are going to be a stretch. As you say, I suspect we're not going to be the only ones as the 'luxury' payments are cut back. I wonder whether golf clubs will also suffer similarly.
 

Bunkermagnet

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They wouldn’t have needed to borrow as much to fund their tax cutting plans if the BoE had revisited QE and printed lots more money.
 

Swinglowandslow

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I changed $600 into £s on Friday. If I had waited to today I’d have got more £s for my $s.

Just think…if I had $60,000,000 to change into £s how much more I would have made today than I would have made on Friday, or indeed compared with a few months ago had I been aware or able to affect what was going to happen to the £ I could have bought $60,000,000 back then and sold it today at a massive profit as the £ has dropped by 20%.

Hold on…?

Want to know why the £ has fallen? This has nailed it..
 

pauljames87

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I'll put my hand up here! At present we have a window cleaner, cleaner (once a fortnight), a dog walker (once a week) and in all likelihood all of these will be going as we're due to re-mortgage next year and our increase payments are going to be a stretch. As you say, I suspect we're not going to be the only ones as the 'luxury' payments are cut back. I wonder whether golf clubs will also suffer similarly.

Luckily my mortgages are 6 years left and the solar is 10 year fix and when it ends it ends so got wiggle room

We have a cleaner and window cleaner

Prob won't spread the finances much thinner .

I mean I assessed our mortgages overpayments this morning and took them off the solar one and it's all going off the big one now just to get it as low as possible

Was looking in 2 years to buy a new ev and then lease one to replace big car.. now just looking at buying the one and use the lease money to cover the gaps until remortgage
 

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It's a mixed bag for me, I work for an American co, all of my business is done in USD. Luckily for me, only about 15% of my work is in the UK, and most of it is in Europe. Things at home will increase but the plus side is my comms are targetted in $ and paid in $ to our UK payroll and I get the day fx, so on a good month, I won't be compaining! But what you get in hand gets swiftly removed by another...
 

Mudball

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It's a mixed bag for me, I work for an American co, all of my business is done in USD. Luckily for me, only about 15% of my work is in the UK, and most of it is in Europe. Things at home will increase but the plus side is my comms are targetted in $ and paid in $ to our UK payroll and I get the day fx, so on a good month, I won't be compaining! But what you get in hand gets swiftly removed by another...


For an American co... Your next year's sales targets (measured by HQ in USD) but achieved by you in GBP will be up 15-25% ...
 

Rooter

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For an American co... Your next year's sales targets (measured by HQ in USD) but achieved by you in GBP will be up 15-25% ...

I transact in USD, the whole shebang. So my target will remain. The problem I will face is my UK customers will have to pay more.
 

Mudball

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I transact in USD, the whole shebang. So my target will remain. The problem I will face is my UK customers will have to pay more.

Understand.. that can be challenging.. Part of mine is internally set via USD but dealings are in local currency (GBP for us). Suddenly the hedging teams in HQ are very sought after ....
 

WGCRider

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They wouldn’t have needed to borrow as much to fund their tax cutting plans if the BoE had revisited QE and printed lots more money.

The wise people of Italy yesterday elected some absolute right wing loons to run the country. As a consequence the cost of them borrowing money has shot up. It's higher than the cost for Greece. The cost for the UK today is higher than for both.

It's almost always unwise to to compare household to countries. But if you borrowed money to by a house (or any asset) that would be okay. However if you borrowed money to pay for your Friday night out or pay for your groceries you'd be an idiot. This government is borrowing money to give it away at the same time as underwriting effectively unlimited liability on energy bills. I'm not sure what it is but it's not sound economics.
 
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