The GBP in freefall? and the reason?

[Chaddy]

The UK pound was at 1.055 when I first opened my lap top this morning to enjoy my first cup of Joe.( that's what the Americans call coffee ) What is the reason for this dramatic fall ( 1.20 a couple of weeks ago ) Surely it cant be the dreaded virus because most other countries have it.....Oh and why do the Americans call coffee...….Joe?

[Jim B]

On the news this morning the finance people said it was more to do with the strength of the dollar and Euro rather than the weakness of the pound.

Jim

[cyprusmax47]

more about the Sterling on here:

https://cyprus-mail.com/2020/03/18/poun ... -30-years/

Max

[Devil]

SPECULATION

[Jimgward]

The UK is on it's own - and outside the EU(nearly) we are vulnerable in every way - of all times to be there....

Also, the UK has done almost nothing to support the individuals and businesses. During 2008, they bailed the banks out to the tune of over £800bn. They have committed only £30bn for this crisis - the rest is simply insurance guarantees for some of the risk of business loans. Mortgage holidays aren't costing them anything. They have been appalling in their response and I am sure the markets recognise that the UK will come out of this all, very vulnerable and unable to bounce back as quickly as countries like France and Denmark who are helping people and companies.

[bromerzz]

Nasty old Labour Party in power back in 2008.That was a typically poor decision from them.

[Discobolus]

I think the problem is the currency markets are wondering where all this money the Gov is supposed to be spending is coming from, at the moment the National Debt stands at £1.84 trillion, 83% of GDP, mind you this pales against the US debt which is over $23trillion

[Jim B]

Nasty old Labour Party in power back in 2008.That was a typically poor decision from them.

Rightly or wrongly at least they did something unlike the faffing around and managed panic that appears to be happening under Blojos' watch.

Jim

[Dominic]

Went down to 1.05. Back up to 1.09 now. Let's hope it keeps climbing again.

[Kili01]

I think that a measurable part of the problem in the UK is down to Boris. He isn't a decisive leader, Is not charismatic and is a poor public speaker. He has to rely on others. It seems to be government by committee with Boris seeking others advice, even when appearing on TV. Which slows down the speed at which this Govt does anything. However, having got rid of his previous, far more experienced Chancellor, he chooses a much younger man with no time to get to grips with his crucial new job. He just does Boris’s bidding sanctioning the spend, spend ethos of this Govt. lnternational money experts can’t help noticing the huge amount of money this Govt is spending in every direction. And this is really a very critical time for every country. It's a pity that both the two previous PM’s who both seemed far more sensible and capable got kicked out during the the whole shambles of the drive to leave the EU, led by Nigel Farage.

Dee

[Dominic]

Have to disagree there. With regards to the Corona Crisis, Boris Johnson has relied on his experts. And by that I mean proper scientists. Compare him to Trump.

[Jim B]

I agree with Dee; he's been procrastinating over the whole issue.
If a hundred experts say one thing and my expert said the opposite I would have a rethink. The Italians and the Chinese and most other countries said the UKs approach was wrong as did many eminent experts in the UK did but he carried on regardless until doing a complete U turn .it's all been about supporting the money people and insurance companies. The loss to GDP with the schools closing has been estimated at 3.9% hence the delay in doing it. Even Cyprus has said all workers laid off Will get 60% of their salary, how much have UK workers been promised; a big fat nothing to date and will have to rely on the good will of their employers.

Jim

[Varky]

I think if you examine what the government is actually spending on the support for businesses and workers you will find that they are only guaranteeing loans made by banks to these people. The are not dishing out any cash themselves. They seem to forget that they trumpet the part played by these SMEs and their workers in the UK economy in the 'good' times but now when the chips are down......

[Jimgward]

Have to disagree there. With regards to the Corona Crisis, Boris Johnson has relied on his experts. And by that I mean proper scientists. Compare him to Trump.

Sorry - 'scientists' with a small s..... Her Immunity - nonsense.... partial shutdown - nonsense. .... predicting it will get worse for 2 weeks, then better - nonsense...

[Jimgward]

News just in..... 80% of salary for those who cannot be employed@! Well done at last!

[Jim B]

This morning went to the bank to get euros to pay for heating oil, the supplier asked for cash. To cut a long story short I used my HSBC debit card at the Hellenic Bank and was offered an exchange rate of 0.93 Euros to the pound; looks like the pound is taking quite a hammering and we've still got Brexit to come.

Jim

[Dominic]

Sterling back up to near 1:13

[Jimgward]

Apparently the Euro is weakening as the situation in Southern Italy is getting out of hand. There, very few are high earners and many dont pay tax, so government support is lower. They fear riots.

[Dominic]

Also up nearly 10 cents on the dollar.

[Jimgward]

I think currency packets over the next few months, will fluctuate as much as the stock exchanges.