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Pound value plunges 6%, Now Equal To 1.24 US Dollar

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    http://www.independent.co.uk/news/bu...-a7349636.html

    :erm:
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    Just computer algorithms going mad.

    All these stop losses triggered at the same time cause there to be tons of sell orders and less buy orders, dragging the price down.
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    Though this is isn't the bottom, I see it going lower still. Markets run on fear and greed plus overreaction.

    You will see an overreaction of fear before the greed kicks back in a few months.
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    (Original post by rambapa)
    Just computer algorithms going mad.

    All these stop losses triggered at the same time cause there to be tons of sell orders and less buy orders, dragging the price down.
    The algorithm crash no longer applies - 1:1.24 is the actual exchange rate now, and will drop further, deteriorating of course the UK's ca deficit.
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    (Original post by *Stefan*)
    The algorithm crash no longer applies - 1:1.24 is the actual exchange rate now, and will drop further, deteriorating of course the UK's ca deficit.
    Markets should always be taken with a pinch of salt. They always overreact to any little bit of news and in the short term run on fear and greed. What you are seeing is fear in action, a lot of people dumping the pound to find safer currencies. Obviously this will drive the price down.

    Also you need to remember to buy UK bonds/shares etc, you need sterling. So if the demand in UK listed equities drops, sterling will fall as well. Demand will pick back up once we have a clearer picture of immigration and the single market.

    I like what theresa is doing, she wants to pain to be short and quick. We will be hammered until March for sure, currency wise, stock market wise and property market wise, but after that it will be business as usual.
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    once trump gets in I will bank the profit and dump my gold. and for those that don't like me and like to piss on me when down Yes I am aware what happened to gold over the last few days I stand by it as an investment still up overall and it is just fluctuation.

    I do think though trump will cause a lot of fear but he will fix things economically so trump gets in let the markets react and gold go up a bit then cash in profit.
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    (Original post by rambapa)
    Markets should always be taken with a pinch of salt. They always overreact to any little bit of news and in the short term run on fear and greed. What you are seeing is fear in action, a lot of people dumping the pound to find safer currencies. Obviously this will drive the price down.

    Also you need to remember to buy UK bonds/shares etc, you need sterling. So if the demand in UK listed equities drops, sterling will fall as well. Demand will pick back up once we have a clearer picture of immigration and the single market.

    I like what theresa is doing, she wants to pain to be short and quick. We will be hammered until March for sure, currency wise, stock market wise and property market wise, but after that it will be business as usual.
    What's 'short-term' for you? The pound has been falling without pause and the exit process has not even been initiated. This is the beginning - not the end.

    That will take a long time. Until the, the damage will be irreparable.

    No it will not be. What?! Every business has been warning against that, the pound has been hammered (not even to the full extent - which means import costs will rise exponentially) and that was with the premise that a trade deal would be struck (which seems unlikely now). If you think this equals 'business as usual', well, I have bad news for you.
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    poor £

    :hugs:*
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    (Original post by *Stefan*)
    What's 'short-term' for you? The pound has been falling without pause and the exit process has not even been initiated. This is the beginning - not the end.

    That will take a long time. Until the, the damage will be irreparable.

    No it will not be. What?! Every business has been warning against that, the pound has been hammered (not even to the full extent - which means import costs will rise exponentially) and that was with the premise that a trade deal would be struck (which seems unlikely now). If you think this equals 'business as usual', well, I have bad news for you.
    Short term is basically now until March. Long Term is 5-10 years from now.

    Damage is never irreparable, you can't compare brexit to the great depression in the US of the 1930s or even WW2. Germany was flattened in WW2, and now they are the strongest economy in Europe.

    Markets bounce back like normal, it will be business as usual sir/madam.
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    don't worry little £

    Brexit will bring us a wonderful future and the NHS is getting all of that money from the nasty Europe.*
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    If you want to make a killing, invest in UK equities (valuations are cheap in a lot of sectors)
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    It was overvalued anyway,
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    (Original post by rambapa)
    Short term is basically now until March. Long Term is 5-10 years from now.

    Damage is never irreparable, you can't compare brexit to the great depression in the US of the 1930s or even WW2. Germany was flattened in WW2, and now they are the strongest economy in Europe.

    Markets bounce back like normal, it will be business as usual sir/madam.
    So, what's the 'in-between' then?

    You're making the mistake here of assuming that Britain will fix the damage. By denouncing the single market, it's waiving goodbye to much of what made today's Britain. If you're saying 'no trade-deal at all', it's not that you can't repair the damage, it's that you don't want to. And from that, you can't get out of.

    Yeah, dream on. Unless you mean Lehman type bounce back of course, lol.
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    Someone's about to make a lot of money.
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    The £ has always been overvalued, anyone with an iota of economic knowledge knows that. Would have resulted in bubbles forming leading to economic collapse if left unattended.
 
 
 
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