Parity this week? $, £ euro

[OutInTheShed]

https://www.bbc.co.uk/news/business-63030208

Pound dipped below $1.05

Are we worried yet?

[phumy]

As i work overseas i get paid in US$, bring it on, lets see parity. Its the best exchange rate i have ever seen in over 20 years.

[GiantCardboardPlato]

10/10 PH points phumy.

[croyde]

That article mentions an emergency meeting this week about raising interest rates.....again.

Do the treasury and the Bank of England not discuss things at all?

I'm no economist but it all seems very odd to me.

Maybe the UK, and the rest of the world, is going down the financial toilet and the governments are just flailing around trying to be seen to be doing something..


....it's Covid response all over again.

[OutInTheShed]

Analysts banging on about not just government spending, but the current account/trade balance.
Calls for higher interest rates.

[Ed Moses]

croyde said:

Do the treasury and the Bank of England not discuss things at all?

It would appear not by design with our new leadership.

[The Mad Monk]

Try not to worry about it.

Do not spend money trying to push the rate up.

Learn to relax.

[dmahu]

Is it not a bit of an overreaction considering not many people were paying 45% tax anyway and most of the changes were cancelling planned rises rather than introducing tax cuts?

If I was an FX trader, which I’m not, GBP would feel oversold to me.

[LimaDelta]

Let's hope so. We were promised this after Brexit but it never materialised. Best it's been for me since March 2020. It won't last though, never does, but at least gives me a bit of a bump in this month's salary.

[wisbech]

dmahu said:

Is it not a bit of an overreaction considering not many people were paying 45% tax anyway and most of the changes were cancelling planned rises rather than introducing tax cuts?

If I was an FX trader, which I’m not, GBP would feel oversold to me.

I think it is more the borrowing to pay peoples' energy bills that is spooking the market. Blank cheque time - 60 billlion? 100 billion? Who knows.

[GiantCardboardPlato]

Ed Moses said:

croyde said:

Do the treasury and the Bank of England not discuss things at all?

It would appear not by design with our new leadership.

Twice a week apparently. Chancellor and bank manager of England.

[Fusion777]

Touched $1.03 which is embarrassing, even considering the dollars’ strength. Talk is of a possible emergency meeting on rates, maybe even this week/today.

Starting to get a bit reminiscent of Black Wednesday- flailing around in a vain effort to get control.

[GiantCardboardPlato]

LimaDelta said:

Let's hope so. We were promised this after Brexit but it never materialised. Best it's been for me since March 2020. It won't last though, never does, but at least gives me a bit of a bump in this month's salary.

Ok, your salary will go up in GBP value, but isn’t this thinking a bit one sided? Surely the price of most of what you spend it on will, too?

[GiantCardboardPlato]

wisbech said:

dmahu said:

Is it not a bit of an overreaction considering not many people were paying 45% tax anyway and most of the changes were cancelling planned rises rather than introducing tax cuts?

If I was an FX trader, which I’m not, GBP would feel oversold to me.

I think it is more the borrowing to pay peoples' energy bills that is spooking the market. Blank cheque time - 60 billlion? 100 billion? Who knows.

Borrowing money to fund tax cuts.
Borrowing money to subsidise energy costs.
Increases money supply/availability.
= inflation
= value of gbp drops.

It’s the inflationary risk of the actions taken that are now being priced in to gbp. It’s nothing to do with the mechanism or the choice, just the outcomes.

[anonymous-user]

At least it’s easy to work out the holiday exchange rate!

[LimaDelta]

GiantCardboardPlato said:

LimaDelta said:

Let's hope so. We were promised this after Brexit but it never materialised. Best it's been for me since March 2020. It won't last though, never does, but at least gives me a bit of a bump in this month's salary.

Ok, your salary will go up in GBP value, but isn’t this thinking a bit one sided? Surely the price of most of what you spend it on will, too?

Not necessarily. Some I spend in EUR, some in GBP. The main one is my mortgage, which is GBP. Oil/electricity bill has gone up already (also GBP), so at least this will mitigate that rise.

[QBee]

I have been watching the $ and € rates since 5am - they are both slowly recovering as common sense wakes up and comes back into the markets.
Thankfully I got on and booked a request to forward buy $100,000 at $1.1027/£1 on Friday afternoon (instead of taking Friday afternoon off like the great British workman and most of my colleagues), or my name really would have been mud.

[croyde]

As of the budget on Friday what I'm up in a year on less tax roughly equals what I'm currently down per month on mortgage, bills, petrol and food.

[rdjohn]

I am completing on my house sale in France this week, so every €0.01 fall is worth more than £5k to me.

But I do hope that there is a massive rebound in November.

[RogerDodgerSuperTodger]

The Mad Monk said:

Try not to worry about it.

Do not spend money trying to push the rate up.

Learn to relax.

Pretty irrelevant comment if you ask me.

Depends entirely on your circumstances.