Post by unlawflcombatnt on Jan 23, 2009 10:28:37 GMT -6
The British are doing everything humanly possible to devalue their currency. So far, they've been quite successful. Below is a graph from Yahoo Finance showing the trend (The British pound is denoted by "GBPUSD=X")
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Below are excerpts from Bloomberg story discussing the pound's demise.
British Pound-Sterling (£) Crashing
on U.K. Bank Concern
By Molly Seltzer and Ye Xie
January 22, 2009
"The yen traded near a record high against the pound as speculation that the deepening financial crisis will force the British government to nationalize banks boosted the haven appeal of Japan’s currency.
Sterling erased its decline yesterday against the dollar after touching the lowest since Margaret Thatcher was prime minister as equities climbed and Reuters reported the Group of Seven may discuss the pound’s slump. The dollar dropped to the lowest versus Japan’s currency since 1995 as traders quit buying the greenback to prevent it from sliding below 90 yen after options contracts expired.
“We have seen significant selling off of sterling in the past couple of days after the U.K. banking system came into its problems,” said Henrik Gullberg, a strategist in London at Deutsche Bank AG, the world’s biggest foreign-exchange trader. “Dollar-yen had been remarkably stable at 90 for some time.”
The pound traded at 124.75 per yen at 7:10 a.m. in Tokyo, after falling 0.1 percent yesterday and reaching an all-time low of 119.42.
....Sterling slid as much as 2.2 percent to $1.3622, the lowest level since September 1985, before trading at $1.3948.....
Sterling lost 5.3% versus the dollar and 3.5% against the euro in the past three days after the U.K. government’s plan for a 2nd bank bailout in 3 months raised concern the financial crisis is deepening....
Bank of England....may acquire securities such as corporate bonds and commercial paper to bolster lending, Bank of England Governor Mervyn King said in a Nottingham, England, speech on Jan. 20.
“The speech hurt the currency as it was more explicit than we expected,” said Geoffrey Yu, a foreign-exchange strategist at UBS AG in London. “The central bank is turning on the printing presses.”....
“The U.K.’s imploding,” said Jonathan Gencher, Toronto- based director of currency sales at BMO Capital Markets, a unit of Canada’s fourth-largest bank. “The pound will remain under pressure until the BOE has cut rates until there is not much scope for further rate cuts.”...."
www.bloomberg.com/apps/news?pid=20601085&sid=aD8E9ByyYjtE&refer=europe
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Below are excerpts from Bloomberg story discussing the pound's demise.
British Pound-Sterling (£) Crashing
on U.K. Bank Concern
By Molly Seltzer and Ye Xie
January 22, 2009
"The yen traded near a record high against the pound as speculation that the deepening financial crisis will force the British government to nationalize banks boosted the haven appeal of Japan’s currency.
Sterling erased its decline yesterday against the dollar after touching the lowest since Margaret Thatcher was prime minister as equities climbed and Reuters reported the Group of Seven may discuss the pound’s slump. The dollar dropped to the lowest versus Japan’s currency since 1995 as traders quit buying the greenback to prevent it from sliding below 90 yen after options contracts expired.
“We have seen significant selling off of sterling in the past couple of days after the U.K. banking system came into its problems,” said Henrik Gullberg, a strategist in London at Deutsche Bank AG, the world’s biggest foreign-exchange trader. “Dollar-yen had been remarkably stable at 90 for some time.”
The pound traded at 124.75 per yen at 7:10 a.m. in Tokyo, after falling 0.1 percent yesterday and reaching an all-time low of 119.42.
....Sterling slid as much as 2.2 percent to $1.3622, the lowest level since September 1985, before trading at $1.3948.....
Sterling lost 5.3% versus the dollar and 3.5% against the euro in the past three days after the U.K. government’s plan for a 2nd bank bailout in 3 months raised concern the financial crisis is deepening....
Bank of England....may acquire securities such as corporate bonds and commercial paper to bolster lending, Bank of England Governor Mervyn King said in a Nottingham, England, speech on Jan. 20.
“The speech hurt the currency as it was more explicit than we expected,” said Geoffrey Yu, a foreign-exchange strategist at UBS AG in London. “The central bank is turning on the printing presses.”....
“The U.K.’s imploding,” said Jonathan Gencher, Toronto- based director of currency sales at BMO Capital Markets, a unit of Canada’s fourth-largest bank. “The pound will remain under pressure until the BOE has cut rates until there is not much scope for further rate cuts.”...."
www.bloomberg.com/apps/news?pid=20601085&sid=aD8E9ByyYjtE&refer=europe