I thought this quantitative easing malarkey was over and that we should start seeing a slow rise in the pound? Indeed, last week it'd crept up to 1.82 against the AUD, but today I see it's down to 1.75! bloody hell, I really hate this at the moment, I just wish it could get back over 2.0 or thereabouts, my savings just keep getting eroded, it's awful 🙁
I thought this quantitative easing malarkey was over and that we should start seeing a slow rise in the pound?
The only short term way of increasing the value of a currency that I know of is by increasing interest rates and I'm not convinced that that would be too helpful for the economy as a whole. The fall in the pound doesn't actually mean that you have "lost" any money as there is the potential for the situation to reverse. The only way to "lose" in this situation is if you actually convert your AUS$ to Sterling.
saving is another form of gambling where you bet the money will still be worth something when you try to spend it 🙁
Good Aussie employment figs out overnight and commodities have firmed up a bit in the last few days
Stop spending all your money on shiny things!
well my savings are becoming worthless, so I figured I'd invest some in titanium 😉 I reckon it's a good bet 😆
BoE were being less optimistic than the Government about the state of the economy yesterday.
http://business.timesonline.co.uk/tol/business/economics/article7022632.ece
face it, the UK is on the way down
hey simon_g, you stole my name 😉 what's your surname btw, not Graham is it?
that's fun reading from the Times... hurrah, we're still screwed 🙄
I share your pain. I took a substantial chunk of money over here 2 years ago.
Oz went into the recession with large surpluses so it actually had some money with which to stimulate the economy. UK interest rates have been kept down so there's no incentive for big money to be left here.
And Oz actually produces something.
i remember when i went out to Oz back in 2001 and the exchange rate was approx 2.8AUD/1GBP.
went out there for a year with £800 and still spunked it up the wall within the first month.
Simplistically its a matter of supply and demand.
Exchange rates are driven by institutional investment. If an economy is in decline it attracts less investment and the value of the currency depreciates.
In this case, a BoE statement painted a less than rosy picture of the UK economy and numbers in Australia were better than expected. Simplistically institutional investors would rather hold AUS$ than UK£.
As above
Economy in Australia is stable, strong and growing. The UK isnt, at least at the moment. The AUD is strong against most major currenices, not just the GBP
Australian economny at the moment being driven signiifcantly by massive overseas investment in mining and oil/gas industries and associated infrastrucutre development
My GF is going to love this living in Sydney and owes me money via bank transfer tonight.
Barely growing GDP here and Greece being in the toilet financially have affected all currencies in and around the Eurozone.
There's also the uncertainty over the election, neither of the main parties are attractive to the markets.
🙁 1.72 today... **** it, all my savings are going into bikes, it'll probably depreciate just as ****in quickly 👿