Sterling on back foot due to growing concern about no-deal Brexit

[pegman]

39 minutes ago, Basil B said:

could end up with £35 = 1 Baht, A hedge fund manager in the know could make a killing...

Everybody should have know since the Brexit vote that the £ was going to continue to tank. No doubt there are lots of well off on both sides that shorted the £ and will make out nicely. Next sure short will be the ฿.

[SheungWan]

I’m on about you. You’re the one scurrying back to UK because of the exchange rate. You wish ill of British pensioners who are still in favour of Brexit. It’s all your own problem because you are the one who miscalculated. Maybe the Brexiteer pensioners didn’t, or simply don’t moan and a prepared to tough it out because its best for UK.

"Tough it out..." = take a good kicking and then thank the Brexiteers for making it possible. Bunch of comedians.

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[SheungWan]

Everybody should have know since the Brexit vote that the £ was going to continue to tank. No doubt there are lots of well off on both sides that shorted the £ and will make out nicely. Next sure short will be the ฿.

I doubt very few indeed are into currency trading and shorting. However, passive Sterling savings have taken a big hit. Savings in FTSE 100 companies have done OK.

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[zorrow424]

£ will recover in short space of time,no doubt,its a UK govt dream to see this happen,get those foreign debt amounts down in short space of time.    Just have to hold on,it will recover quite quickly.

   Just hope Boris sticks with it,do not want the backstop,do not want Eire,nor the EU   just get shut

[cleopatra2]

35 minutes ago, zorrow424 said:

£ will recover in short space of time,no doubt,its a UK govt dream to see this happen,get those foreign debt amounts down in short space of time.    Just have to hold on,it will recover quite quickly.

   Just hope Boris sticks with it,do not want the backstop,do not want Eire,nor the EU   just get shut

Can you explain

[zorrow424]

11 minutes ago, cleopatra2 said:

Can you explain

The term short selling states a lot,short is the operate word, time as well,UK is in a enviable position.   Now I know Eire is up s.hitcreek with or without backstop,even now shoppers from Eire flocking to NI spending their punts  sorry euros

[cleopatra2]

8 minutes ago, zorrow424 said:

The term short selling states a lot,short is the operate word, time as well,UK is in a enviable position.   Now I know Eire is up s.hitcreek with or without backstop,even now shoppers from Eire flocking to NI spending their punts  sorry euros

I understood the term short selling to refer to selling a currency expecting if to go down in value.

 

I not fully understand how it lowers UK debt

[zorrow424]

7 minutes ago, cleopatra2 said:

I understood the term short selling to refer to selling a currency expecting if to go down in value.

 

I not fully understand how it lowers UK debt

That is OK  You are Irish,says everything.   Now I positively know you and other Irish contingent spend every waking hour on here,attempting to convince one and all worldwide,....well not quite, Id say less than a half dozen at any one time.  Id try for a job actually         PS paying it off with cheap money

[cleopatra2]

4 minutes ago, zorrow424 said:

That is OK  You are Irish,says everything.   Now I positively know you and other Irish contingent spend every waking hour on here,attempting to convince one and all worldwide,....well not quite, Id say less than a half dozen at any one time.  Id try for a job actually         PS paying it off with cheap money

Well you could try explaining your reasoning why a de valued currency leads to lower debt

[zorrow424]

6 minutes ago, cleopatra2 said:

Well you could try explaining your reasoning why a de valued currency leads to lower debt

If I have a debt of say £100 (trillion) would rather pay it at 36 whatever than 50 whatever  jesus

[bristolboy]

9 minutes ago, zorrow424 said:

If I have a debt of say £100 (trillion) would rather pay it at 36 whatever than 50 whatever  jesus

Except you have it exactly reversed. If you owe money to a foreign lender, then the more the pound is worth the easier it is to pay off that debt.. Jesus, Joseph, and Mary.

[zorrow424]

1 minute ago, bristolboy said:

Except you have it exactly reversed. If you owe money to a foreign lender, then the more the pound is worth the easier it is to pay off that debt.. Jesus, Joseph, and Mary.

A £ is worth a £ when it comes to paying off a debt,fact is Id be flogging off the crown jewels to get anything paid off

[bristolboy]

10 minutes ago, zorrow424 said:

A £ is worth a £ when it comes to paying off a debt,fact is Id be flogging off the crown jewels to get anything paid off

then why did you invoke a rate of 36 vs. a rate of 50?

[zorrow424]

1 minute ago, bristolboy said:

then why did you invoke a rate of 36 vs. a rate of 50?

Shortselling,or more specifically short is operative word.This rate is not going to last long,there will be spike,£ will pull away. While £ rests at 36 with whatever currency reserves the UK holds,.. and holds debt of whatever , debt is paid at 36,more 36s than 50s

[Henryford]

On 7/24/2019 at 12:17 PM, cleopatra2 said:

Did the majority of leave vote for no deal 

We have a deal WTO. We never expected the EUSSR to be sensible and co-operate with our escape.

[cleopatra2]

2 minutes ago, zorrow424 said:

Shortselling,or more specifically short is operative word.This rate is not going to last long,there will be spike,£ will pull away. While £ rests at 36 with whatever currency reserves the UK holds,.. and holds debt of whatever , debt is paid at 36,more 36s than 50s

No short selling is the act of selling a currency in the expectation it will go lower.

If as you explaii a pound is worth s pound it is immaterial what the exchange rate is.

The only instance where the exchange rate becomes a factor is when the debt is in a foreign currency . Usuall US dollars.

[zorrow424]

4 minutes ago, cleopatra2 said:

No short selling is the act of selling a currency in the expectation it will go lower.

If as you explaii a pound is worth s pound it is immaterial what the exchange rate is.

The only instance where the exchange rate becomes a factor is when the debt is in a foreign currency . Usuall US dollars.

Exactly....owing outstanding US100,000,000,better paying loan off at GBP .90 to the $,than GBP 1.1 to the $

 Everyday transactions do not apply

[Basil B]

Boris & Gove's "No Deal Brexit" Saber rattling has not phased the the EU... but badley spooked the pound.

[Mike Teavee]

16 minutes ago, zorrow424 said:

Exactly....owing outstanding US100,000,000,better paying loan off at GBP .90 to the $,than GBP 1.1 to the $

 Everyday transactions do not apply

Again, you've got it backwards... 

 

If you owe $100 and the GBP-USD is 1:1 then it costs you 100 GBP to repay it, if the GBP-USD rate is 0.9:1 then it costs you 111.11 GBP 

 

 

[mfd101]

As Keynes might have said: When the facts change, I mind my change. What do you do?

[zorrow424]

A note to clients from London Capital Group said of the no-deal Brexit effect: "From a market perspective, the worst is probably being priced in right now".
https://www.bbc.com/news/business-49130447

   not much fear factor there,Boris? ,no stopping the guy now

 

[Loiner]

"Tough it out..." = take a good kicking and then thank the Brexiteers for making it possible. Bunch of comedians.

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We can see that you are not enjoying your kicking. Maybe it’s time for you to scurry off back to UK or HKG too.
It’s all about what is best for the UK, not baht strapped pensioners in TH. If I were a comedian I’d be telling the jokes at your expense, but I’m not as vindictive as you Remainers.

[bristolboy]

1 minute ago, Loiner said:

We can see that you are not enjoying your kicking. Maybe it’s time for you to scurry off back to UK or HKG too.
It’s all about what is best for the UK, not baht strapped pensioners in TH. If I were a comedian I’d be telling the jokes at your expense, but I’m not as vindictive as you Remainers.

Devaluation isn't great for workers living in the UK, either. A big reason why the average worker has actually suffered a decline in real wages despite the strong employment numbers.

[bristolboy]

2 hours ago, zorrow424 said:

Exactly....owing outstanding US100,000,000,better paying loan off at GBP .90 to the $,than GBP 1.1 to the $

 Everyday transactions do not apply

The UK runs a balance of payments deficit. So if anyone is going to benefit from a rise in the pound, it would be the parties with which the UK exchanges pounts for goods & services.

[Loiner]

The devalued pound is not a particularly big issue in the UK. People might feel the pinch when holidaying overseas and more so when going to Thailand.
If a low pound affects imports from the EU, and tariffs further increase the price of that new Porsche, well that’s ok.
Reduced prices for all UK worldwide export goods, even with some new tariffs into EU, is also ok by me. As most of UK exports are not cheap products, but value added good stuff, it will still increase exports. Let’s just make a major adjustment to the UK/EU trade imbalance.


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[bristolboy]

Just now, Loiner said:

The devalued pound is not a particularly big issue in the UK. People might feel the pinch when holidaying overseas and more so when going to Thailand.
If a low pound affects imports from the EU, and tariffs further increase the price of that new Porsche, well that’s ok.
Reduced prices for all UK worldwide export goods, even with some new tariffs into EU, is also ok by me. As most of UK exports are not cheap products, but value added good stuff, it will still increase exports. Let’s just make a major adjustment to the UK/EU trade imbalance.


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It will also increase the cost of any auto not manufactured from scratch in the UK. Which means every auto manufactured in the UK.

And tariffs will apply to any auto not manufactured in the UK

[bristolboy]

2 minutes ago, Loiner said:

The devalued pound is not a particularly big issue in the UK. People might feel the pinch when holidaying overseas and more so when going to Thailand.
If a low pound affects imports from the EU, and tariffs further increase the price of that new Porsche, well that’s ok.
Reduced prices for all UK worldwide export goods, even with some new tariffs into EU, is also ok by me. As most of UK exports are not cheap products, but value added good stuff, it will still increase exports. Let’s just make a major adjustment to the UK/EU trade imbalance.


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Do you understand that it is lowering average real wages?

[Loiner]

It’s not a massive issue for the people in the UK.


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[bristolboy]

5 minutes ago, Loiner said:

It’s not a massive issue for the people in the UK.


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And the increase in auto prices? That won't be a big issue either?

[tomacht8]

11 minutes ago, Loiner said:

It’s not a massive issue for the people in the UK.


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Rubbish.

Your country imports more than it exports.

If the pound is weak, importers have to pay more pounds. Leading then to raise prices in the domestic market.