> The pound has hit a new 37-year low after the bonanza of tax cuts and spending measures in Kwasi Kwarteng’s mini-budget threatened to undermine confidence in the UK.
>
> **Sterling fell to $1.077 in early trading when Asia-Pacific markets opened after the weekend, closer to parity with the US dollar.**
>
> Chris Weston, the head of research at the brokerage firm Pepperstone, said the pound was “the whipping boy” of the G10 foreign exchange market, while the UK bond market was “getting smoked” thanks to Kwarteng’s £45bn debt-financed tax-cutting package.
Champagne corks popping for Kwarteng and his mates.
He may not “comment on market movements” to the BBC but you’d better believe they’re raking it in with the shorts they put on. ££££
Get the Tories out now they are destroying this country for their own greed
Starting to think it might fall off a cliff and drop below $1 this week, requiring some type of intervention. If so, Truss might end up finding she’s in the job for no more than a month. Hope she hasn’t unpacked.
Pretty confident it will be below $1 by the end of the week. The UK is circling the drain with no way out.
Something crazy is happening here, just fell below 1.04 almost instantly.
To put it into perspective £100,000 is now $105,800, a month ago would of been $117000
I really hope that the BoE will do ABSOLUTELY NOTHING – let this pathetic excuse of a government own this disaster.
Savings turning into monopoly money… Everything is fine
Lot of quiet Tories about.
You’d think they’d be coming out of the woodwork to own this latest act of national vandalism.
Funny how that works.
Damn!!! This one hits hard. I really feel poor now and my savings have lost substantial amount in front of my eyes. Its hard to think how strong Pound was just before brexit and it has sunk so low ever since.
What does this mean in the simplest terms? What’s going to happen going forward if the pound falls below the dollar, what does this do to the average person
Hopefully the BoE steps in sooner rather than later, ideally today.
The BOE will intervene in a massive way. Fast forward a year or so and reposessions go crazy, banks stop lending, banks runs and fails. Credit crisis all over again. This time no bail out. CBDC magicaly appears along with digital ID’s = great reset.
Is there macro issues at play? Yes. Have the UK made things much worse with domestic policy? Absolutely.
The bill for the energy price cap has just risen markedly as oil and gas are traded against the dollar. Unless Truss and her cronies can cost this stuff believably (which is almost certainly not possible) in the eyes of global banks and economists then parity might be not go far enough in terms of bearish predictions (£0.95 – $1 – anyone ever expect such figures?!). ~~On the other hand, with less buying power this might serve to reduce inflation, but in just about the least friendly way imaginable for normal working folks.~~
EDIT: Right pointed out, inflation will rise significantly, in it’s purest form our currency is simply worth less on our import-heavy economy.
So how are they gonna make this the problem of the poor or labour or Europe or immigrants this time?
I hope all of your seat harnesses are tight because this is going to be one hell of a rollercoaster.
17 comments
> The pound has hit a new 37-year low after the bonanza of tax cuts and spending measures in Kwasi Kwarteng’s mini-budget threatened to undermine confidence in the UK.
>
> **Sterling fell to $1.077 in early trading when Asia-Pacific markets opened after the weekend, closer to parity with the US dollar.**
>
> Chris Weston, the head of research at the brokerage firm Pepperstone, said the pound was “the whipping boy” of the G10 foreign exchange market, while the UK bond market was “getting smoked” thanks to Kwarteng’s £45bn debt-financed tax-cutting package.
Champagne corks popping for Kwarteng and his mates.
He may not “comment on market movements” to the BBC but you’d better believe they’re raking it in with the shorts they put on. ££££
Get the Tories out now they are destroying this country for their own greed
Starting to think it might fall off a cliff and drop below $1 this week, requiring some type of intervention. If so, Truss might end up finding she’s in the job for no more than a month. Hope she hasn’t unpacked.
Pretty confident it will be below $1 by the end of the week. The UK is circling the drain with no way out.
Something crazy is happening here, just fell below 1.04 almost instantly.
https://twitter.com/Tapishpandey27/status/1574208857504710656
EDIT – GBP Futures have been halted.
To put it into perspective £100,000 is now $105,800, a month ago would of been $117000
I really hope that the BoE will do ABSOLUTELY NOTHING – let this pathetic excuse of a government own this disaster.
Savings turning into monopoly money… Everything is fine
Lot of quiet Tories about.
You’d think they’d be coming out of the woodwork to own this latest act of national vandalism.
Funny how that works.
Damn!!! This one hits hard. I really feel poor now and my savings have lost substantial amount in front of my eyes. Its hard to think how strong Pound was just before brexit and it has sunk so low ever since.
What does this mean in the simplest terms? What’s going to happen going forward if the pound falls below the dollar, what does this do to the average person
Hopefully the BoE steps in sooner rather than later, ideally today.
The BOE will intervene in a massive way. Fast forward a year or so and reposessions go crazy, banks stop lending, banks runs and fails. Credit crisis all over again. This time no bail out. CBDC magicaly appears along with digital ID’s = great reset.
Is there macro issues at play? Yes. Have the UK made things much worse with domestic policy? Absolutely.
The bill for the energy price cap has just risen markedly as oil and gas are traded against the dollar. Unless Truss and her cronies can cost this stuff believably (which is almost certainly not possible) in the eyes of global banks and economists then parity might be not go far enough in terms of bearish predictions (£0.95 – $1 – anyone ever expect such figures?!). ~~On the other hand, with less buying power this might serve to reduce inflation, but in just about the least friendly way imaginable for normal working folks.~~
EDIT: Right pointed out, inflation will rise significantly, in it’s purest form our currency is simply worth less on our import-heavy economy.
So how are they gonna make this the problem of the poor or labour or Europe or immigrants this time?
I hope all of your seat harnesses are tight because this is going to be one hell of a rollercoaster.