Pound hits 7 year low - Good or Bad?

[wongl]

So the pound has hit a 7 year low, is this good or bad? Will it fall further or has it hit rock bottom? Is it time to buy that new car before Mercedes put their prices up again?

 

[Red C220]

Not good if you buy your stock in US Dollars

 

[acej]

Not good if you buy your stock in US Dollars

But good if you have stocks that pay in US dollars

 

[zipdip]

The pound is not at a 7 year low,it is trading around 1.28 as I write and from recent memory in 2014 it was 1.21 I doubt that Mercedes will put their prices up on that,I remember a few years ago now Porsche had a small team of traders who made them a fortune on the FX market and kept the company selling in the US,what is happening now is the pound and the euro are under the cosh the pound because of us leaving the EU and the euro because Draghi has not said what they are going to do ,print more euro's or reduce the base rate in the EU,or something else??

 

[renault12ts]

Not good if you are going to the US in Sept and things haven't changed by then.

 

[Charles Morgan]

Fortunately I bought most of my W114 parts when the rate was between €1.35 and 1.4 (rate achieved on transfers). Now about €1.2. A big difference. Petrol prices will go up given oil has also risen of late.

 

[Red C220]

Spot rate is currently around the $1:41 mark.

The Euro in a around 1:28.

It's all to do with reasonable growth in the USA and concern about the EU referendum.

Other than that it's just a guess. When we speak to the FX traders we use for our business transactions the reality is they don't really know what's going to happen.

 

[400ixl]

They were predicting a dip in the first half of the year with a recovery towards the middle. That was before the Euro exit position which has compounded the trough.

It is going to depends on the speculation around the referendum as to whether that additional dip recovers in the short term.

 

[Calcifer]

History repeats itself, what goes up comes down to a certain point.

Fracking, shale gas, Iran they will only strengthen the $. In turn the many currencies pegged to it.

If you discount that brief day in 2009. It's a 10 year plus low.

 

[Deleted member 37751]

"Grant me the serenity to accept the things I cannot change,
Courage to change the things I can,
And wisdom to know the difference"

 

[davidjpowell]

Not good if you are going to the US in Sept and things haven't changed by then.

Or May....

 

[Deleted96908]

So the pound has hit a 7 year low, is this good or bad? Will it fall further or has it hit rock bottom? Is it time to buy that new car before Mercedes put their prices up again?

If they do, maybe they'll offset most of it with lower finance rates off of Carney's hinted 0% base rate...

And looks like they finance UK consumer loans off the back of STG bonds/MTNs:

- meaning they borrow in STG and lend in STG, so no nasty surprises for them or prospective borrowers.

Edit - BBC reckons decline has been going on for a while due to low UK interest rates these past 18 months:

BBC: The pound has fallen 17% against the dollar over the past 18 months as the outlook for an interest rate has changed.

 

[tec]

Not good news if you are looking at buying a property in France or Spain or other EU country.

 

[wongl]

I am looking to buy a shed load of pound using Hong Kong Dollars (which is pegged to the US Dollar). Thing is the pound keeps falling and I am trying to catch it at it lowest - already bought quite a lot two days ago when it hit HKD11.00. Contrast this when I bought a property in London using a loan in Hong Kong when it was over 12.50.

But today it fell even further to 10.85, so my actions two days ago wasn't so well timed, especially now they are speculating that it will continue to fall to around 10.50 and will stay at that level till Q3.

 

[AMGeed]

I'm not so happy. I bought Swiss francs last week and changed the remaining ones back today. 100 CF = £65 20

 

[Benzowner]

Your bag of chips will not cost more unless the cooking oil is priced in $

 

[wongl]

Your bag of chips will not cost more unless the cooking oil is priced in $

Strangely, my Chips will cost more to buy from the USA (for my computer), and even the cost to run them will increase as Electricity prices are likely to rise inline with oil prices.

I wonder if Apple will put up their UK prices of their iPhones?

 

[flango]

Jut bought my last car in Germany the deal was done at an exchange rate of 1.42 talk about timing