Euro-Sterling exchange rate - predictions please

What is occuring is a "rotating sovereign debt crisis".

http://www.guardian.co.uk/business/2010/feb/28/sterling-crisis-currency-pound

Comparing the flawed pound, euro and dollar against each other.

A clash to the bottom between 3 flawed and worthless fiat papers that no longer have any real private industry to support them. Government supported economies lead to worthless currencies over the longer term.

Long term investors are better off positioning themselves in real, 21st century currencies -

Gold
Asian currencies, stocks and bonds
The Aussie and Canadian dollars
The Norwegian Krone

These are the places where currencies will rise against the bankrupt West over the next 10-20 years.

Peter Schiff sets out in 'Crash Proof 2.0' how an investor should position themselves to make currency gains from the fall of the West and the rise of Asia and commodity producers.
 
ringledman said:
What is occuring is a "rotating sovereign debt crisis".

http://www.guardian.co.uk/business/2010/feb/28/sterling-crisis-currency-pound

Comparing the flawed pound, euro and dollar against each other.

A clash to the bottom between 3 flawed and worthless fiat papers that no longer have any real private industry to support them. Government supported economies lead to worthless currencies over the longer term.

Long term investors are better off positioning themselves in real, 21st century currencies -

Gold
Asian currencies, stocks and bonds
The Aussie and Canadian dollars
The Norwegian Krone

These are the places where currencies will rise against the bankrupt West over the next 10-20 years.

Peter Schiff sets out in 'Crash Proof 2.0' how an investor should position themselves to make currency gains from the fall of the West and the rise of Asia and commodity producers.
Click to expand...

Will 'the West' be the new poor in the next few decades?

Taxed to death, laden with personal debt, huge mortgages?
 
RMCF said:
Will 'the West' be the new poor in the next few decades?

Taxed to death, laden with personal debt, huge mortgages?
Click to expand...

We'll our standard of living is going to fall for a long time indeed.

Economic growth will be negligable for 10 years minimum.

Asia standards of living will, albeit from a very low base, grow exponentially.

We won't get poorer down to their level, we just wont get richer either. Asia will continue to boom and propel their wealth upwards from the low levels currently.

the only 'Western' countries that will get richer, and be it much richer are Canada, Australia, New Zealand and Norway.

Their time has come. The commodity boom will last at least another 10-15 years as judged by the length of all commodity booms. This will maintain their overall wealth for a long time.

In the 80s and 90s the countries with a poor future were the resource and commodity producers as commodities were in a secular bear market. We in the non resource countries prospered as goods were cheap due to depressed commodity prices.

This role reversal has now occured.

Importing commodity countries like - US, Europe, UK and Japan will suffer going forward due to rising costs.

Exporting commodity countries like - Asia (in general), Africa, Oz, Canada, Norway, New Zealand and South America will gain from selling rising priced commodities to us.

Its the way of the world. Can't be changed. Just a question of how you position yourself to prosper in the future.
 
Pound has been in serious trouble over the last few days dropping down to the 2010 resistance of 1.0980 (0.9107). All on the possibility of a hung parliament in the upcoming election and UK deficit worries.

The direction of the Pound against the Euro is up in the air atm, if Greece goes bankrupt the Euro could decline, and if the UK deficit isn't sorted or we have a hung Parliament the pound will decline heavily.

__________

The Pound declined against the Euro and the Dollar yesterday on political uncertainty and concerns over Britain’s bloated public deficit. A weekend poll indicated that the ruling Labour Party would remain in favour without a clear majority. The prospect of a hung parliament continues to hurt the pound as Britain’s efficiency to deal with its distended budget deficit is continuing to raise concerns. The market will keep an eye on a 2 billion pound auction of 2039 Conventional gilts later today to gauge investor confidence.


The Dollar made gains against the Pound while remaining relativity unchanged against the Euro as woes over Greece’s financial debt weighed down risk appetite. The dollar should be a bit quieter this morning as many investors await the ADP employment data and the Fed’s Beige Book.


The Euro made gains against the Pound while remaining relativity unchanged against the Dollar after Greece’s biggest public sector union called for a 24-hour strike on March 16 to protest Athens expected plans to cut its ballooning debts. However, the euro was able to recoup some of those losses after Greek Prime Minister George Papandreou announced a cabinet meeting on Wednesday to “take decisions about the economy.” On the economic data front, the European Union’s statistics office said consumer prices in the Eurozone grew 0.9 % in February, pointing to low inflationary pressures and boosting expectations the European Central Bank will start raising interest rates in 2011.
 
Boros said:
Pound in serious ruble over the last few days dropping down to the 2010 resistance of 1.0980 (0.9107). All on the possibility of a hung parliament in the upcoming election and UK deficit worries.

The direction of the Pound against the Euro is up in the air atm, if Greece goes bankrupt the Euro could decline, and if the UK deficit isn't sorted or we have a hung Parliament the pound will decline heavily.
Click to expand...

I read that the problems in Greece and the Euro zone are making sterling fall as most of the UK's trade is in the Euro Zone! What a crazy world we are living in.

It's extremely interesting watching the collapse of the euro, pound and dollar.

You can't really judge the weakness of one v the other as you are mearly comparing the ratio of 2 failed and flawed independent variables against one another.

One has to give but is not as a result of any real inherent strength v the other.

Priced in a real currency like gold they are all collapsing.
 
This is an interesting time for anyone thinking of changing money from euro to sterling or vice versa.The biggest factor is the U.K. political situation and the quantitative easing issue/public deficit.
I predict that the pound will weaken to 97c to 99c to the pound in the run up to the election. This might be over a month if the polls for the election are inconclusive.
If the election is clearcut the pound will strenghten down to below 90c . If there is a hung parliament the pound will stay high and might spike over parity for a few days but then will firm as some government will inevitably be formed.The long term outlook over the next year will be around 90c.
 
The Pound is looking weak at this present time is likely to break through the 0.9090 support.

A key figure in a UK hedge firm stated last week that if the UK did indeed have a hedge fund that the euro would break parity against the Pound and the Pound decline by 20/30% across the board.

My personal view is that this will not happen (hung-parliament) but i think the Pound is in for a Choppy ride

www.currencyexchange-advice.com
 
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