GBP-THB showing signs of recovery

Calling bottom on a currency movement is definitely a bad idea, so I won't do it.

The pound suffered considerable losses with surprise Brexit decision (UK to leave euro zone), and prime minister resignation.

Today I'm reading a new prime minister has been announced, and this seems to have sparked some much needed upside against other currencies including the baht. Whether that's the bottom, only time will tell.

Flip side is that they're talking about possible interest rate reductions, which is a fundamental driver of currency rates and could hurt the pound. If a rate cut is likely to happen, markets will start to price it in before its announced.

So may be good news for any Brit tourists and expats who saw massive losses in the pound with Brexit. And ultimately any Brit vaper buying vape stuff in a foreign currency, which is probably actually most vapers, as little vape gear is made in UK from what I understand.

 

45bt to the pound is not good. I hope it gets better.

 

The Euro had dropped to very close to the the US dollar. The pound isn't far behind right now. I hope for the Brits out there things will get better for you.

 

Is also my hope, as we'd been ticking along for sometime between 50 and 55, which is OK, pound goes a reasonable way.

Pre-Brexit I was seeing around 51 and post-Brexit it's been lurking around 46, so a 10% drop. GBPUSD I think was hit harder.

I imagine markets will see Brexit as regards Europe as a bad thing, and Europe already in a mess, so further weakening there. If these currencies keep heading for parity, then maybe we can just replace everything with USD ... But I fear there'd be more against than for on that one ...

For Americans, could be a good time for a Europe holiday with strongest rates for 30 years

**Updated**

PS, GBPTHB was over 46 today, so when local Thai currency changers catch up, might just get 46 if you shop around.

 

I think on Thursday, GBP will take a fall on Thursday
as Mark Carney will allegedly announce a cut in interest rates to 0.25%

hope I'm wrong...

 

I heard same, BOE are expected to drop interest rates from 0.5 to 0.25. As markets have already priced this in (probably), if that happens there shouldn't be too much movement. If they don't change them, put them up or put them down lower, then this would have a bigger impact on the pound.

So probably you're right !

 

Even though, the interest rate cut is factored in...

When the announcement is made, the £ will nosedive......

Since Brexit was announced, when news has been announced, the pound has dropped- then remain stable,
but didnt recover back to the pre-announcement rate..

This is my worry....

 

46.38bt to the pound today.

 

Brexit has gone better than I expected so far. The GBP was a lot lower three years ago, and my family survived. We might even get dark blue passports back. Ten years ago I spent hours on flights between the UK and LoS scratching "European Union" off the cover of my passport with my thumb nail.

 

Brexit is a long way off, 2 years at the earliest. There is going to be a lot of volatility with the GBP and with such a long period of uncertainty it appears that a recession (maybe mild, maybe not) will probably happen.

In the past the £ has been very attractive for foreign funds because it has a history of being strong and stable, until things are sorted out, or there is a feeling that things have bottomed out there will be a lot more caution. I think there will be more job losses than new jobs created in the meantime.

If I knew what the strength of currencies were in the future I would be extremely wealthy, so I can only guess but I am personally planning on the GBP going closer to 40 rather than 50 to the TB. I hope I am wrong, time will tell!