Pound Starting To Stenghen.

[skybluestu]

The Conservatives didn't win, it was a hung parliament and they are now in a coalition with the Lib Dems. If the Tories had of won outright then the pound may well have strengthened but it was always clear that if there was a hung parliament the pound would weaken and it has, no surprise.

[chiang mai]

Do 'nt think so!. Some Brit ex-pats were thinking the pound would immediatley start to strengthen on a Conservative victory.

Hmmnn what happened?

"Skybluestu" gave you the answer but it's only fair to add that, in addition, the Greek soveriegn debt problem hit the table right around election time and Sterling was impacted by the falls in the Euro hence any slight gain was pretty much obliterated.

[makescents]

The new British Goverment starting to get serious about cuts in public spending already, will this have any affect on the exchange rate?

http://www.timesonline.co.uk/tol/news/poli...icle7134040.ece

They'll strengthen but they're not going to get to 75 again.

I predict a 55 peak until there is a serious reduction in the deficit.

[chiang mai]

The new British Goverment starting to get serious about cuts in public spending already, will this have any affect on the exchange rate?

http://www.timesonline.co.uk/tol/news/poli...icle7134040.ece

They'll strengthen but they're not going to get to 75 again.

I predict a 55 peak until there is a serious reduction in the deficit.

Agreed although I would suggest that 50 is the top.

[phutoie2]

The Conservatives didn't win, it was a hung parliament and they are now in a coalition with the Lib Dems. If the Tories had of won outright then the pound may well have strengthened but it was always clear that if there was a hung parliament the pound would weaken and it has, no surprise.

Thanks for update, I was not aware.

My BBCi player must be faulty.

Most financial commentators were of the opinion the pound would weaken if there was a hung parliament and Labour somehow remained in control, why did you think Gord hung around for a bit.

Your point on the drop in the pound due to the new coaltion party now in power is a weak one.

I would say that Sterling needs to strenghten v the $ before we get more beer chits, or is that stating the bl--ding obvious.

[sokal]

The new British Goverment starting to get serious about cuts in public spending already, will this have any affect on the exchange rate?

http://www.timesonline.co.uk/tol/news/poli...icle7134040.ece

Not in the short to medium term but in the long run if they continue to cut it will strengthen the currency.