Neil - it looks like an extra cut in the BoE rate has been priced into the market as the Euro is now 1.27 per GBP.

and the £ is sliding big time...not good if you are transferring funds abroad, which I am trying to do, but good news if you are selling.

looks like the £ slide will continue on the back of the $. Does anyone have any idea how far the £ slide will go??

Regards
Chris.

Hi Guys

Right now I have no idea how far the £ will slide vs the Euro.

I imagine that the ECB can't let it go on without intervention - as the sliding Euro pushes up inflation.

I think it may be more words than action - but something needs to give.

You are correct, that it is a good time to be holding Euro assets - but not such a great time to be transfering cash abroad.

Cheers
Neil

Chris

Difficult to see how the $ can go much lower right now.
As for the £ - it's guesswork really, but personally I have no doubt the euro rate will be on its way down very soon, which will strengthen the £ relative to the euro.

cheers

Ah Robin - you are a brave man!

My thinking is along those lines too - that the ECB must now intervene and just a few words hinting at a shift in policy will turn the markets - but I've got such a dreadful track record at currency predictions ... that I'm going to sit on the fence on this one!

Cheers
Neil

Neil

Brave or foolhardy! Tt's a fine line!

But on this one I just don't see how the ECB can avoid cutting now. You can hear the howls all over the eurozone!

Cheers

Having listened to various opinions or non opinions from 'experts' this morning, I get the impression we are very much in unchartered water now and noone has any idea where this is all going. Some say that the Fed has loads more options open to them yet and suddenly the BOE has put £5billion into the market - where has that come from? Is there more to come?

Is there such a thing as a Global Balance Sheet? If so, is it possible that the balance sheet shows net liabilities or is there still some serious wealth out there that the US and Europe will be able to tap into to straighten this out?

Hi Savvy

Lots of serious wealth, yes. Sovereign funds, worth trillions and they're already out there buying into banks and anything else that looks like a bargain.

But I agree with you - it's unchartered territory

cheers

Yes Savvy - it is uncharted waters on the currency front - anyone who tells you otherwise is either deceiving you, deceiving themselves or both.

So what's the betting on the Fed's move today?

Will they bring the overnight rate down to 2.25%, 2%, or less?