Will the pound recover?

magick

magick

magick

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The pound has fallen 25% against the dollar over the past few weeks. This means that houses in the US will now be 25% more expensive for us in the UK to purchase.

Will the pound rise back up to £1=$1.9?
 
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Short answer - no

Long answer: Bank of ENgland predicts rates will rise to 1.65 in 12 months time.

As for back to 1.90 it will probably happen again one day. As to whether that is two, five or ten years nobody knows.
 
Shame a friend of mine is thiknking of moving to florida. That means whatever house he buys will now be £25k more expensive for every £100k it costs.
 
Works well for me as I should be getting a check for a large ammount of dollars in the post soon. Seriously though, it will come back up after a long long time, but as said above no one really knows.
 
magick said:
The pound has fallen 25% against the dollar over the past few weeks. This means that houses in the US will now be 25% more expensive for us in the UK to purchase.

Will the pound rise back up to £1=$1.9?
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Don't know about $1.9 but it was up over 300 pips at some point yesterday. Hopefully the worst is over and the trend is upwards.

When is your friend planning on moving?
 
As far back as I can remember, the pound has always bought around 1.5 dollars - only in the last few years was it a 1:2 ratio as Bush sought to keep the dollar cheap to boost the US economy.
 
LoL...

There is nothing new going on, it has all happened before, regularly, just not that recently.

It used to be called boom and bust. Then Gordon Brown, that brilliant chancellor of the exchequer of ours fixed it permanently so we just had permanent long term sustained stability. Oh wait ..... :D

Historically a $2 pound is high by about 25% I think. When you start to see TV items about brits enjoying cheap holidays in the US you know a crash is on the way.
 
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When I was a youngster the rate was 2 dollars to the pound then for years and years it was more 1.5-1.6 then a couple of years ago it shot up and now it's going back down. The current exchange rate is much more like the norm than the one of 6 months ago, it will go up and down thats what currency does but will normally find it's way back to about 1.6
 
Yeah about 1.6 is right I think, it's been too high for some time now, not that I was complaining when travelling to the US :D
 
i don't think it will 'recover' but the dollar is due a big fall so it might get back to previous levels - but its more a case of the dollar may start falling faster than the pound - they are both falling.
 
i hope it gets weaker, i changed all my savings into dollars when the pound was strong. Now as the pound gets weaker i get free money basically. Which will come in useful because im away travelling soon
 
magick said:
Shame a friend of mine is thiknking of moving to florida. That means whatever house he buys will now be £25k more expensive for every £100k it costs.
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The $2 ship has sailed and who knows when it will reappear again. If he has his heart set on moving / buying a house and his budget still allows it, why not? Money isn't everything.

Maybe he'll get to Florida and find that he can bag a repo for £25k below market value. :p
 
I am trying hard to resits the obvious joke but it is not fair on Magick so I wont.

I have a mate who inherrited a large sum of $. He has been unable to get any more money from his US savings over the last year, I bet he is much happier now!

It will go back up, I think we took this bust worse than most due to our general overborrowing in this country.
 
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