Pound slumping.

IT WENT UP YESTERDAY

up against the euro.

I'm getting a bit bullish on cable now. It's has most of the bad news and with rates at sod all and inflation roaring away, they're only going up. Of course, they wouldn't have to if we chopped enough of the waste (otherwise known as the public sector) fast enough, but we won't...

Goring

Do you not consider the other side of the argument EVER? Infaltion is simply not overly excessive, and will come under control later this year. I do not buy this talk of IMF bailouts etc etc.. This country is a lean , mean tax collecting machine!

If only this lean mean machine could collect another 163 billion a year we would be alright.

I layed the pound vs dollar on monday via a spreadbet. Went great to start with but since then it has gone up quite a bit. Could this be due to the inflation figures making the market think interest rates will go up?

I would not touch £/euro because both look pretty sick and I would not know how to call it.

Glad to say cable is well down tonight at 1.5334 as I write.

Any forex experts have any ideas?

rates are nbot going up. Even if they do it will only be by a very small amount. We have to put this in perspective. It is not a question of when rates increase but by how much they will increase!

At present the consensus seems to be it will take 3 years to get back to 3%!

plenty catches here.

pound is down today today so I decided to close out my position at 1.531 then hopefully pay again after a rebound.

Chisel I'd say that a 20 to 25% reduction in the value of our currency inside 12 months WAS excessive.

Look at the price of oil and gold in sterling too see just how much less you can buy with your pounds now than you could a year ago.

Live 4

Comparing thepound to dollar/euro over 12 months and there is little difference!

The price of Gold means absolutely nothing! and the price of Oil is more exoensive now than 12 months ago no m,atter what currency you care to choose.

I simply do not buy this. The Euro in my opinion is due a fall, and the dollar is probably fair value!

Chisel I didn't mention the dollar, or the euro. The dollar is losing value just as our pound is. They are heavily indebted, (as is much of the eurozone) and have no realistic way to pay it back just like us.