British Pound

Looks like the GBP/USD rate is about to break the 1.20 level it’s tested before but found support.

I think the GBP is an outstanding buy right now, but my only reasoning is that, based on long term historical data, there’s no way it can stay that low for too long.

I already own some and am about to buy more. Or am I just being naive ?

Who knows? How do you think the Brexit chips will fall?

London is about to turn into the Singapore of tax havens. It's going to blow up in their face. You buy a lot at $1.20, then it falls to $0.80 and never comes back up in your lifetime. You'll have to win at the tables to make that up.

Quote: Ace2

Looks like the GBP/USD rate is about to break the 1.20 level it’s tested before but found support.

I think the GBP is an outstanding buy right now, but my only reasoning is that, based on long term historical data, there’s no way it can stay that low for too long.

I already own some and am about to buy more. Or am I just being naive ?

I have some to sell. LOL.
As it stands, I'd accept a handful of magic beans or even BitCoin.
Not so sure about Dollars though. $;o)

Looking at a graph going back to 1975, it only dipped below 1.50 twice and only for a couple years. To my knowledge, never in history has a USD been worth more than a GBP.

The uncertainties over Brexit have led to the fall, it's very political over here and has split the nation. The issue is whether we leave the EU with a "No Deal", something gets sorted out before the current deadline of 31st October, it gets extended again or there's a general election/another referendum. The other factor is how difficult it will be if, as seems likely, there's a No Deal exit and how that affects imports and exports of food, medicine etc. Both sides are playing political games, hence the deadlock and postering.

Quote: Ace2

Looking at a graph going back to 1975, it only dipped below 1.50 twice and only for a couple years. To my knowledge, never in history has a USD been worth more than a GBP.

The Brits are no longer second fiddle.

currencies are subject to fears and also subject to eventual reality.

this brexit thing is like a pre-divorce agreement with overtones of a post-divorce agreement as sides posture about 'done deal' or not.

political adjustments will be made according to later economic realities and values will rise.

I know very little about the subject.

Is there any reason for these historical relationships between currencies, or to think they'd continue?

I guess as long as the governments print about the same amount of currency relative to whatever parameters are relevant, they should stay about the same, no?

What is it about brexit that should affect the value of the pound? I do know that cheap currency should mean a big spike in tourism and exports. Perhaps Brexit will put up some barriers to these things so that demand for the pound remains low even if the price is good.

Quote: Rigondeaux

I What is it about brexit that should affect the value of the pound? I do know that cheap currency should mean a big spike in tourism and exports. Perhaps Brexit will put up some barriers to these things so that demand for the pound remains low even if the price is good.

Lots of Brits are making reserves of foreign products, in anticipation of higher prices after a no deal divorce.
Mechanically, higher imports leads to selling pounds, hence the depreciation.

After the split, imports should be more expensive and exports reduced, so I would expect more depreciation.