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Post by Admin on Oct 2, 2010 1:11:46 GMT 1
MARKET NEWS 30TH SEPTEMBER 2010
GBP
The Pound dropped to near four-month lows against the Euro as economic data suggests that the UK recovery is faltering. In the midst of the decline in the Pound was is the uncertainty surrounding the UK housing industry. UK mortgage approvals fell from 48.3 thousand down to 47 thousand for the month of August. The day ahead will see a lack of major announcements from the UK so the GBP may well fail to push higher.
EUR
The Euro gained to an eight-month high against the US Dollar yesterday. This occurred after the European Industrial Confidence picked up from -4 up to -2 for the month of September. The day ahead will see the release of the German Unemployment rate. This is expected to remain on hold at 7.6% for the month of September.
Source: FirstRateFX
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Post by troll on Oct 2, 2010 9:31:57 GMT 1
This post is remarkable for the TIME it was posted!!!!!!! What on earth were you doing up at that hour? don't you have duvets in 35land?
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Post by BartyB on Oct 2, 2010 9:41:30 GMT 1
She'd only just got in (vitorious) from the anual Baileys drinking championships
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Post by Admin on Oct 2, 2010 10:43:23 GMT 1
Yawwwwwwnnnnnn - couldn't sleep - nightmares about the euro GBP rate so did some more tracking in the wee hours. Think it was all based on 3rd quarter results by looks of the figs but it doesn't seem to be improving. So thorough check on Monday morning then I (on behalf of this household) will make a decision on what to bring over. xe.com is a great site for tracking. Its not a pretty sight tho at the mo
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Post by AnnieD on Oct 2, 2010 16:03:14 GMT 1
mmmmm I have the same worries, whether to transfer or not, the descend from 1.22 to 1.14 hurts, but then it was 1.02 not that long ago so .......................
Think I'm just going to leave things as they are, but then again maybe I won't !!!!
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Post by ianh on Oct 2, 2010 17:59:39 GMT 1
Well, I only have Euros so, with what's left after paying Stavros' pension, I'm thinking of saving up for a little pied a terre in Mayfair - or possibly a cottage in the Cotswolds.
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Post by raw on Oct 2, 2010 21:42:25 GMT 1
Some weeks ago it was predicted that the pound would drop against the euro, the perfect storm was the description. But this may be the last time, as there are strong signs that after this the euro will come under considerable pressure. If you hold euros very shortly may be the time to consider sending them to the UK, wait a bit to see if it does go down, then in a few weeks bring it back. Make a few hundred/thousand on the back of nothing!
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Post by Admin on Oct 2, 2010 22:43:57 GMT 1
Good to see you back raw - missed you.
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Post by stavros on Oct 3, 2010 9:57:11 GMT 1
Various world-class economists are issuing storm warnings for the Euro, suggesting a very rough ride soon to begin. Joseph Stiglitz (Nobel winner and former top honcho at the World Bank) even goes so far as to suggest that the Euro won't survive without major revamping.
Many European countries rushed lemming-like into the Euro without thinking it through, and in most cases not even fulfilling the pre-conditions set out in the Maastricht treaty. (Many recognised this, saying, "Yes, but we're almost there, and within xxx timescale we will be in compliance!"... guess what? Yeah, they didn't make it!)
In years to come, perhaps the only worthwhile monument to Gordon Brown's tenure of 11 Downing Street will be his stubborn refusal to join the Euro, despite pressure from the millionaire socialist in number 10. One size doesn't fit all, and the honeymoon didn't last ten years.
Sterling has short-term problems, it might see a brief 'feel-good' boost for a couple of days following the party conference about to begin; it will almost certainly see a downturn a few days later after the sending review is published. Medium to long term it is still in a healthier position than the Euro. The Franco-German axis is politically shaky, and Germany's apparent rude financial health is often at the expense of growth in France. The northern bloc of Germany, France & Benelux isn't immune from the dead weight of Greece, Ireland, Spain and to a lesser degree Portugal, as the 'PIGS' are all vulnerable to attack from the predators in the financial markets.
Raw talks about making a few hundreds/thousands on the back of nothing. He's right, but only for the little folk. The big players will be making millions, even billions in aggregate.
For those with sterling incomes/assets, it might be uncomfortable in the short term, but longer term, if you can sit it out you'll probably be glad that you kept your nerve.
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Post by jackie on Oct 3, 2010 19:47:12 GMT 1
Gawd I hope you're right Stavros. Best thing is not to panic. I know someone who did panic a while back & transfered a whole years money over at the beginning of 2009 at a euro/sterling rate of 1.02! They tried to convince me at the time that it was the right thing to do....
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