Hacker News Reader

Comment by pcl | Hacker News Reader

In the last 60 days, the GBP has slid from 1.20 EUR to 1.09 EUR, fwiw. It definitely looks like something other than a strong dollar.

View on HN

So almost 10% drop relative to the Euro in addition to both of them falling against the dollar. I wonder what's behind that particular weakness for the pound.

The government just announced tax-cuts backed by borrowing, so likely to increase inflation even further.

But isn’t inflation usually an effect that happens after such an event, rather than something that’s being speculated on?

Unless large institutions decided to sell their pounds, but that has to be a huge supply of pounds to make such an impact.

People with money don’t wait for it to become worthless…

If you can reasonably expect something to be worth less in the future after new information emerges, wouldn't you sell it and buy something else?

Brexit plus a completely bonkers set of tax cuts. The UK will vastly increase borrowing, to give a tax cut to high income people. The markets are unimpressed.

I'll admit I thought this was the kind of thing that impressed the markets? (or at least the people who make the market turn the way it does)

On the other hand the USD is also nearing a really high value relative to CAD

EUR sliding against USD as well, right?

Yes which implies the pound is sliding against the dollar significantly faster than the euro, at least the last 60 days.

Reply on news.ycombinator.com