Sterling fell to its lowest level in a month against the dollar after a weak UK gross domestic product reading highlighted risks to the country’s growth outlook.
The pound dropped as much as 1.1% to $1.2186, the weakest level since May 13, after data showed that UK GDP fell 0.3% in April from the previous month, the sharpest pace in more than a year.
Investors have been dumping the pound over concerns the economy will continue to slow just as the Bank of England may have to raise interest rates at a faster clip than initially planned. So far this month, the pound has lost 3.3% against the greenback.
Extends losses? Interesting choice of words.
At least voters are finally getting something they voted for.
GBP down
Pension Investments down
Crypto down
Things I need to buy are up
At least my house which I bought last year will maintain its price…. I mean there isn’t going to be a property crash…r-r-r-right?
The Pound is down 13% in the past year.
That means that it takes 13% more Pounds to buy anything that was originally priced in Dollars (or any other currency which has tracked the Dollar) as well as having to pay more for anything which has inputs which aren’t priced in Pounds (eg. almost anything which needs oil/plastic to make).
The only benefit of a weak Pound is that it should boost our exports. But Brexit has hit our exports so badly that the tumbling Pound only partially fills the gap.
Brexit and the Tory mismanagement of our economy are directly causing the cost of living crisis to get worse and worse.
Elon Musk should take this opportunity to buy the Conservative Party and replace Boris Johnson with a robot.
[removed]
january 2013, when Mr cameron announced the referendum, the pound was buying $1.6350.
This is what happens when both the Bank of England and European Central Bank feel they have basically no legroom to raise interest rates in tandem with the Federal Reserve. Rates look like they may reach just over 4% by the end of 2023 in the US. That’s going to involve a whole load of pain if the BoE and ECB follow in-step.
Gentle reminder that if your earnings or revenue is in USD whilst the bulk of your costs (particularly housing and energy) are in GBP, this isn’t much of a problem.
Most currencies are weak against dollar now. Sterling is weak but euro is even weaker.
11 comments
Sterling fell to its lowest level in a month against the dollar after a weak UK gross domestic product reading highlighted risks to the country’s growth outlook.
The pound dropped as much as 1.1% to $1.2186, the weakest level since May 13, after data showed that UK GDP fell 0.3% in April from the previous month, the sharpest pace in more than a year.
Investors have been dumping the pound over concerns the economy will continue to slow just as the Bank of England may have to raise interest rates at a faster clip than initially planned. So far this month, the pound has lost 3.3% against the greenback.
Extends losses? Interesting choice of words.
At least voters are finally getting something they voted for.
GBP down
Pension Investments down
Crypto down
Things I need to buy are up
At least my house which I bought last year will maintain its price…. I mean there isn’t going to be a property crash…r-r-r-right?
The Pound is down 13% in the past year.
That means that it takes 13% more Pounds to buy anything that was originally priced in Dollars (or any other currency which has tracked the Dollar) as well as having to pay more for anything which has inputs which aren’t priced in Pounds (eg. almost anything which needs oil/plastic to make).
The only benefit of a weak Pound is that it should boost our exports. But Brexit has hit our exports so badly that the tumbling Pound only partially fills the gap.
Brexit and the Tory mismanagement of our economy are directly causing the cost of living crisis to get worse and worse.
Elon Musk should take this opportunity to buy the Conservative Party and replace Boris Johnson with a robot.
[removed]
january 2013, when Mr cameron announced the referendum, the pound was buying $1.6350.
This is what happens when both the Bank of England and European Central Bank feel they have basically no legroom to raise interest rates in tandem with the Federal Reserve. Rates look like they may reach just over 4% by the end of 2023 in the US. That’s going to involve a whole load of pain if the BoE and ECB follow in-step.
Gentle reminder that if your earnings or revenue is in USD whilst the bulk of your costs (particularly housing and energy) are in GBP, this isn’t much of a problem.
Most currencies are weak against dollar now. Sterling is weak but euro is even weaker.