If I were crude I could say that the currency Twats are playing their usual fu.....ing games,
but the BBC try to explain it
https://www.bbc.co.uk/news/business-51921922
it is never pleasant to see one's currency being speculated against, (sold), like this
Sorry but that's nonsense. Capital is simply flowing to the safest haven. Just like investors sell stocks and keep money in cash. Would you also say that people are speculating against these stocks? No, they simply lost trust in the future development of that particular asset and are selling before it falls even further. There are many reasons to see trouble ahead for the UK, lower trade numbers due to Brexit, massive borrowing needs to protect the economy, massively higher borrowing costs for the government, lower tax proceeds going forward. Much safer to buy the Dollar instead, or the JPY. Why the Euro is holding up so well is anybody's guess, I expect some serious crumbling to start there very soon.
And in the end, no way Sterling is singled out. The Norwegian Krona, from a country with the largest per-head monetary reserve in the world, dropped more than 15% against the Pound since the beginning of the year. Today it suffered a 10% drop during one point. Similar for the Australian Dollar.
Here is a chart of the development of CAD, GBP, AUD and NOK for the past month (all against US Dollar). Absolutely horrifying.
I fully agree with your Sterling analysis - lack of trust in the Pound. The Euro has shown some resilience in crisis in the past 5 years (i.e. - we survived the Greece bailout. And so the Euro just feels like a safer place to store cash compared to Sterling if you want to diversify from the Dollar.
Personally, I think the Dollar is overvalued. They're a good few weeks behind the UK on the Virus curve. Plenty of time for panic to set in and draconian laws to come into play.
That's fine, but tell me what to do with my Euros - I had them since October when we sold our house in France and moved back to the UK - parity would be nice - but I followed my gut feelings and kept them, but my gut feeling has now gone and I'm sticking a finger up in the air.
I feel that the Euro is fundamentally weak, but it's such an important currency that it will be supported, but I'm sure the currency trading Twats will have a go at it as they move from one currency to the next as they play their game.
Money moving to the Sterling "safe haven" today - £ now 3% up on yesterday Euro
Last edited by BillN; 19th March 2020 at 16:36.