Will the EX Rate ever go back up?

 I would say a hung parliament is a vote of no confidence across the board resulting in no confidence in sterling resulting in a fall....lets hope i am wrong.

The election result will have an impact on the exchange rate on Friday whichever way it goes. A hung parliament will bring STG down but a Conservative victory will see it rise probably towards 1.20! 

dont write off labour they will bring continuity and stability to the brits and have a positive impact on the exchange rate, although greece appears to be having the biggest impact.

Kirjim2

This thread is about the exchange rate. I admit I don't consider a Labour victory likely but a majority for any party will be better for Stirling than a hung parliament

 Dropped 3c from the heady heights of 1.186 at 3pm yesterday 

Mark

Sterling opened at 1.164 this morning, and is down to 1.160 as we speak!

We all feared a run on sterling if the UK General Election resulted in a hung Parliament, and there is!

Not as bad as everyone thought, because there is much speculation on the Lib Dems doing a deal with the Conservatives or with Labour.

All I can say is "Hurry up Nick Clegg and get your party to make its mind up... as time is running out for Sterling!"

As I said, a hung parliament was already priced in to the exchange rate.  There has been no big drop in Sterling against the euro.  The big drop then bounce back were probably more to do with the carnage on the DOW Jones and nothing to do with the election.

Surely the carrnage on Wall Street was as a result of continuing concerns about Eurozone economies and the inability of Europe to do all that is required to deal with it rather than the other way round. Stirling doing better than expected is also because of Eurozone problems. If a deal is struck to provide stable government in the UK that will be good for stg. Equally if a deal is done to underwrite PIGS debt that will be good for the €uro.

Davmunster - Couldn't agree more!

That's why I said what I said below.

A hung parliament had been priced in slightly, but it was the rumours flying around the markets about what was happening with Greece and the rest of the Euro zone economies that weekend the Euro, as Sterling was still weaker against the Dollar last week.

So, we could still see a run on Sterling from tomorrow if the hung parliament looks like continuing into the week, as there will be doubts on the UK economy.

Likewise we could see a run on the Euro if there is no agreement announced tonight between the 27 countries involved, as there will be doubts about the Euro zone economies.

Bit of a see-saw situation at the mo!

A hung parliament was fully priced in as the exchange rate now is more or less exactly where it was in the days leading up to the election.  I agree that if a Conservative/Lib Dem coalition or arrangement is not forthcoming in the next few days then this could have implications for Sterling.

Looks like the exchange rate has held up well, despite claims by some of a hung parliament hammering Sterling.  It's currently 1.174 as I write this.  Hopefully once the UK deficit is tackled and growth resumes, the rate will head further up, and I will get a nice pay rise!!

 I was back in the UK last week and i caught up with an old friend who works for a finance house in the City.

He has told me that if the UK can continue to kid everyone that it is sorting it's act out and the likes of Angela Merkel continue to put the fear of god into everyone concerning the demise of the European finances we could see a big fall in the Euro.

The only problem is that UK must be seen to be recovering or they will both suffer AGAIN.

He told me that if a number of financial equations come together as expected we could see 1.30+ again very soon against sterling.

The Lib/con pairing are making the right noises at the moment to help sterling but once they actually start coming across the numerous skeletons in many unopened closets we may see the UK fall back into demise.

On a different note, i must say that enjoying a British summertime (if not brief) i was pleasantly reminded of how beautiful the British countryside can be.

Fingers crossed....four sterling pension payments due this week and the exchange rate is much better than it has been in ages...at the moment its 1.199:1.

Also have some USD cheques to pay in to the bank and the dollar / euro rate looks pretty good too at 1.216:1

fb

Yeah, it looks like it's ready to break the 1.20 barrier.  I'm not sure if this is due to the euro being screwed or if it is a clever game being played by the ECB to devalue the euro.  Either way, I don't care.  It means a nice little pay rise for me.

Who Cares!... More of the same please!

It's through the 1.20 barrier.

Currently at 1.205 as I type.

Keep going!

 For Justin really......

Wouldn't it be a really good addition to the site if you put a currency exchange banner across the site.

I have the Moneycorp one on my laptop, it's a real time feed constantly changing and updating as it streams across.

I find it really useful.

Just a thought.

1.204 as i type.......

maybe one of my predictions will actually come through.......come on 1.30!!!!!!!

Yes, good news. If you read this though http://news.bbc.co.uk/1/hi/business/10150007.stm it just goes to show what a shocking dire mess the worlds economy is in, I can't see much more upside for the pound in the short term.

Georgia

I use this http://www.hifx.co.uk/marketwatch.aspx I have it up all day in the background

S

 interesting read.

I was suprised to see the UK was in more trouble than Spain although i suppose you have to factor in the ability to recover?!!