When will the pound stop falling?
There are many investors in the UK dismayed at the fall in sterling which today touched as low as $1.537 in early trade against the dollar, although there are as many UK investors with overseas assets who welcome the unexpected bonus!
However, as the UK economy sinks deeper and deeper into the mire there are real concerns about the future of sterling which has fallen from $2 to the pound just 12 months ago - losing over 20% of its value in the process. While the move will assist exports from the UK it will have a serious impact upon imports which will have a knock on affect to the underlying cost of goods in the shops.
In the past currency has not been a major issue for the UK population as it has remained fairly stable for many years. However, having broken through the $1.60 mark without a friend in the world and more interest rate cuts likely to follow in due course it seems that it could yet fall lower. UK Plc is struggling, debts are creeping higher and nobody knows when it is going to end.
The fall in sterling may seem irrelevant to many but when you monitor the cost of goods imported from overseas, of which there are many in the UK, we will soon see how 'irrelevant' the affect will be.
Share this..
Related stories
Unemployment figures bring markets back down to earth
News that the unemployment figure in the UK has increased to 1.79 million has not been taken well by financial markets. The euphoria of the last few days has all but evaporated with many forecasting that the figure will break through 2 million before Christmas and could possibly peak at 3m next year. We are now at levels not seen since the last recession in 1997 with the jump in the August figur...
Read MoreEU regulations to hit hedge funds
A raft of EU regulations which are set to become law could lead to compliance costs of around £1.2 billion for hedge funds in the first year. It is thought this could fall to around £1 billion the year for the industry in every subsequent year as the regulator gets tough with hedge funds, which many believe were one of the elements behind the collapse in the worldwide money markets.
Read More
EU ruling does not bode well for Lloyds and Royal Bank of Scotland
EU regulators have today confirmed that Dutch bank ING will need to down size its balance sheet in order to take account of state aid which was received when the company was in dire straits. This comes at a time when Lloyds bank and Royal Bank of Scotland are awaiting a ruling on UK government state aid and any potential reduction in the size of the businesses and any asset disposals.
Read More
Are we really bothered what the fat cats earn?
As the UK government appears to be edging closer and closer to revealing the most private financial details of non-board members in the city of London, many are starting to ask the question, are we really bothered what the fat cats earn?
The bottom line is that each and every person in the UK is well aware that those in the top league of the UK financial sector attract the multi-mil...
The economic rescue may work but watch out for the recession
After a couple of days when the sky was blue and the birds were singing, stock markets around the world lurched lower today with concerns that even if the recent rescue package does stabilise worldwide markets the threat of recession is still very real. Reawakening the international money markets and releasing mortgage liquidity to the property sector is all well and good but it only rebalances e...
Read More