I've looking at historical charts and believe that some of the weakness of the pound can be attributed to interest rates bot just brexit.
The USA lifted their rates by 0.25 to 0.5 just as we decreased ours from 0.5 to 0.25.
The pound/euro has previously been this low, again when rates had a 0.25% differential.
imo, it will take rates to be increased back to 0.5% for the pound to stabilise at around:
Euro 1.2 to 1.25
Dollar 1.30 to 1.35
The question is how long will the BOE wait to increase them again having just reduced them. Personally I think it will be sooner rather than later.
Not too soon as they will then have egg on their face.
So I think maybe Jan/feb 2017 for a 0.25 point increase. I suppose time will tell.
Anyone else follow the exchange rates and have an opinion/info? I'm going to the USA next year and think waiting to exchange may be best! :supergrin:
The USA lifted their rates by 0.25 to 0.5 just as we decreased ours from 0.5 to 0.25.
The pound/euro has previously been this low, again when rates had a 0.25% differential.
imo, it will take rates to be increased back to 0.5% for the pound to stabilise at around:
Euro 1.2 to 1.25
Dollar 1.30 to 1.35
The question is how long will the BOE wait to increase them again having just reduced them. Personally I think it will be sooner rather than later.
Not too soon as they will then have egg on their face.
So I think maybe Jan/feb 2017 for a 0.25 point increase. I suppose time will tell.
Anyone else follow the exchange rates and have an opinion/info? I'm going to the USA next year and think waiting to exchange may be best! :supergrin:
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