Why is the GBP is always so low?

[ray richards]

Hi

Can anyone tell me why the GBP is always so low?

I stay in Thailand for 6 months but my friends visiting for holidays say England is doing great for employment & work factories etc etc are very very busy with some working extra shifts.

its also been quoted that U.k is looking at 1 or 2% growth but yet the GBP remains at 43 to 44 baht at exchange booths.

please advise.

thanks

 

EDITED by KhunBENQ: changed title to attract attention.

 

Moved to Jobs, economy, banking, business, investments forum.

[KhunBENQ]

I am afraid you have a somewhat simplified idea about currency fluctuations.

Unfortunately hard-working people have little influence.

There is already a long thread running since October 2016 about the weakness of the Pound.

But maybe it's time for a fresh start?

 

 

[brewsterbudgen]

Blame Brexit [emoji34]

[ray richards]

Ok guys.

Ive not read the long running thread in Oct 2016.

I do agree about the Brexit but since the vote in June 2016 all work etc appears to be booming according to my pals, so i would assume the £1 should show some increase in value of around 47-48 bts but it seems to drop lower each day after a small increase.

Thanks again

[YeahSiam]

Your pals are winding you up - lots of people are still being offered zero hours contracts, part-time jobs and temporary jobs in the UK.

Sorry but Britain is definitely not booming unless the meaning of the term has changed recently.

 

You've quoted 1 - 2% growth as if that's something in sterling's favour?

It isn't - it's dreadful ........even for a developed economy and rising inflation won't help one little bit.

 

Thailand's economy isn't bombproof by any means but at least it grew at over 3% last year.

The Thai people might be up to their eyeballs in debt but the government has a reassuringly low debt-to-GDP ratio.

 

All that being said, I think we may have reached the lows against the baht for now but all it'll take to force a retest is a bit of fear about the deal Britain gets from the EU.

 

 

[ukrules]

Delusional ^

[robertthebruce]

 

 

Just returned from a Holiday in London, it was jam packed with Tourists, and they were all spending like mad...., ,

 

London seems to be a hot spot , 

 

so at least the UK is profiting with that.....

 

London for sure, there is jobs and opportunities, but as for anywhere else ???

 

 

 

 

 

 

 

 

[Kwasaki]

13 hours ago, ray richards said:

Can anyone tell me why the GBP is always so low?

Just not worth worrying about unless you dabble in currency exchange.

[YeahSiam]

10 minutes ago, Kwasaki said:

Just not worth worrying about unless you dabble in currency exchange.

Well, if he transfers money from the UK to Thailand regularly, he'll be dabbling in foreign exchange, won't he?

[ray richards]

Thanks to YeahSiam & others.

Im not too clued up on financial matters but like you all say we cant change things until maybe after Brexit or 2 more years.

it makes the cost of living in Thailand very expensive unless people stay in their Condo & eat kaow pad every day ha ha.

Many Thanks

[Kwasaki]

1 hour ago, YeahSiam said:

Well, if he transfers money from the UK to Thailand regularly, he'll be dabbling in foreign exchange, won't he?

Well l did mean as a job in finance clever clogs. 

[Ricardo]

The Pound crashed immediately after the result of the referendum became clear. Which answers the OP's question.

 

This is not just because the benefits of Brexit, or even the actual event itself, are still years away, but because of the uncertainty which the markets absolutely hate.

 

Meanwhile the Thai Baht & economy plod along, with steady GDP-growth, at a rate which is still higher than the UK's.

 

Although it is worrying that consumer-credit levels are fairly high, in both countries.

[lamyai3]

I wondered the same thing ever since the pound nosedived around eight or nine years ago. Recently though, it's definitely about Brexit. 

[SheungWan]

Lowest for seven weeks:

 

 

[Henryford]

Britain may not be "booming" but i'm sure it's doing better than many other countries. The fundamentals of the country are no different than 9 years ago when the Pound was at $2.10. Yes it's strange that it's so low. OK there is uncertainty over Brexit but countries like Japan do very well on their own. I would be more worried about the EUSSR and it's likely collapse in a few years.

[OJAS]

6 hours ago, Henryford said:

Britain may not be "booming" but i'm sure it's doing better than many other countries. The fundamentals of the country are no different than 9 years ago when the Pound was at $2.10. Yes it's strange that it's so low. OK there is uncertainty over Brexit but countries like Japan do very well on their own. I would be more worried about the EUSSR and it's likely collapse in a few years.

I share your concerns about the probable fate of Juncker's fiefdom, but, unfortunately, this is not the current flavour of the month for exchange rate speculators whereas Brexit is.

[SheungWan]

One would think sterling had inadvertently wandered into a go-bar today to observe its behaviour:

 

[mommysboy]

Who knows with currencies!

 

Remember in this case it takes two to tango: the Thai baht appears to remain one of the world's strongest currencies, for some reason or other.  It almost seems like it is pegged to the US dollar, which is very strong at present.

 

When a currency weakens the job is frequently overdone, and this may be the case with the weak pound.

 

 

[SheungWan]

On 3/17/2017 at 1:11 AM, mommysboy said:

Who knows with currencies!

 

Remember in this case it takes two to tango: the Thai baht appears to remain one of the world's strongest currencies, for some reason or other.  It almost seems like it is pegged to the US dollar, which is very strong at present.

 

When a currency weakens the job is frequently overdone, and this may be the case with the weak pound.

 

 

Well I don't think the Thai Baht is linked to USD theory is holding up too well right now. USD is dropping against GBP and I was getting quite excited at GBPUSD going above 1.25 until I was brought back to earth by the GBPTHB rate which is still chundering around the 43 mark.

[mommysboy]

Ah, I should have mentioned it's a one way peg.  It goes up with the dollar bur doesn't come down accordingly.

 

Yes, I thought I might be in for some extra baht today but got a lousy exchange rate.