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Pound slumps to all-time low against dollar


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By Monica Miller & Peter Hoskins


The pound has fallen to a record low against the dollar as markets react to the UK's biggest tax cuts in 50 years.

 

In early Asia trade, sterling slipped just below $1.04 - the lowest level since decimalisation in 1971 - before regaining some ground to about $1.05.

 

That came after Chancellor Kwasi Kwarteng unveiled historic tax cuts funded by huge increases in borrowing.

 

Full story: https://www.bbc.com/news/business-63030208

 

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-- © Copyright BBC 2022-09-26
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Hopefully there is - in every cloud there is a silver lining- I am returning to live in England next May,

then I,ll be 68 so UK Interest rates will have doubled by then, so will probably buy an annuity after 15 years  of very low interest/annuity rates.

 

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Parity with the euro is on the cards  and the US dollar is a certainty .

Take the inflation in account then the UK pensionists in Thailand will be hit hard .

 

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1 hour ago, placeholder said:

It's also fallen to below 40 against the Baht.

If it gets down to 35baht then that will start to make things problematic for me. Probably a lot of UK expats will have similar problems. When I started living here 11 years ago it was 55 baht to the £. How things have changed since then.

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It kind of feels like the GBP is oversold against the greenback.. i bought a block at 1.0722 so i think i’m in at a decent level.  While the graphs seems to show it falling through a support level, i do think it’s perhaps a bit oversold, so i’m pretty happy with going long at 1.0722 at this point.  

 

im not a really a forex trader but might do small block trades from time to time and only with the larger currencies that have higher trading volumes. 

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4 hours ago, placeholder said:

It's also fallen to below 40 against the Baht.

That's nothing new. It was around 38 only a year or two ago. If it goes below 30 I'll start worrying.

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3 hours ago, strikingsunset said:

Hopefully there is - in every cloud there is a silver lining- I am returning to live in England next May,

then I,ll be 68 so UK Interest rates will have doubled by then, so will probably buy an annuity after 15 years  of very low interest/annuity rates.

 

I suppose that getting a few percent more on the annuity will help stave off the 15%+ inflation a bit.

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2 hours ago, ourmanflint said:

Some people have made million if not billions shorting the pound after govt gave hedge fund managers advanced warning of their plans last week. The most corrupt govt we have ever seen and they've only been in power 20 days

Wouldn't that be illegal ?

Do you have some evidence to back that claim up ?

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Just now, baboon said:

It is now plain for all to see that Britain's mortal enemies are not Xi or Putin, but our own government. Tory voters, give yourselves a round of applause.

Well, according to what I've read, the average member of the Conservative Party who got to vote on Johnson's replacement, is far wealthier than the average citizen. So maybe they should give themselves a round of applause and a pat on the back.

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The Tory party have barely 2 years to recover. Failure to do so and they will most likely lose the next election. If that happens I just hope it's a clear Labour win without the need for a coalition with the SNP or the Lib Dems, or both.

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4 hours ago, Harveyboy said:

just a Question would now be a good time to buy sterling with euros i have both in my else accounts 

Short answer would be yes, but I think the pound could well fall further. I moved my business base to Europe when Brexit was announced, whilst still living in the UK.  I therefore trade predominantly in Euros with a sterling option.

 

The situation in UK is dire and with these charlatans in charge will only get worse in the short term.  I have been a Conservative all of my life but last time voted Lib Dem.  No general election in sight so the present government will milk it as much as they can until they get kicked out!

 

So, I will wait for now but keep as much of my profits in Euros as I can, until I see where Britain and the pound are going to end up.

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10 hours ago, Harveyboy said:

just a Question would now be a good time to buy sterling with euros i have both in my else accounts 

 The Chancellor of the Exchequer has stated he will be doubling down with more  borrowing to give tax cuts to the super rich so I would be careful. 

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13 hours ago, new2here said:

It kind of feels like the GBP is oversold against the greenback.. i bought a block at 1.0722 so i think i’m in at a decent level.  While the graphs seems to show it falling through a support level, i do think it’s perhaps a bit oversold, so i’m pretty happy with going long at 1.0722 at this point.  

 

im not a really a forex trader but might do small block trades from time to time and only with the larger currencies that have higher trading volumes. 

Catching falling knives. Better wait for support and an up tick. Less profit but better safe than sorry

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44 minutes ago, Phil1964 said:

Truss was elected by 88,114 people.

Now she has just rewarded them for their crosses on the ballot paper, by giving them a massive tax cut in exchange and while stiffing the rest of us in this fast declining country.

 

Shocking , giving a tax cut just to 88 114 people and not giving a tax cut to anyone else .

   How did she legally manage to get that measure passed ?

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21 minutes ago, Mac Mickmanus said:

Shocking , giving a tax cut just to 88 114 people and not giving a tax cut to anyone else .

   How did she legally manage to get that measure passed ?

Because it's not against the law and her government has a majority in parliament.

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1 hour ago, RayC said:

Because it's not against the law and her government has a majority in parliament.

OK, I didn't realise the government could give different tax rates to individual people 

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18 hours ago, webfact said:

In early Asia trade, sterling slipped just below $1.04 - the lowest level since decimalisation in 1971 - before regaining some ground to about $1.05.

I can remember when when you got $2 to the pound.

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