Fundemental Shift in Thinking for the GBP??

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You'd know why. Until this mob or the next bunch of wannabees get their act together each holiday in France is costing me dear.

The world is worried that we won't be able to pay off this massive debt we're building up and the overall impact is going to destroy us as a trading nation.

Plus I suspect there is no effort being made to talk the Pound up as it helps our exports (what's left of them) and the gutless bastards in Whitehall can't do much to help in case it offends our 'friends' in Brussels. (But that's another can of worms.)

Because BoE is expected to rise QE program further. And I don't remember right now who said this: "a weaker pound is helping our economy"(probably the governor of BoE) but this is not helping GBP. So we can say that this is a 'verbal intervention'.
But there are also other factors.

Cheers guys thanks for the replies! great to hear some views from those directly affected and in plain view of what is actually happening... 'on the ground' so to speak.

After talks with friends who recently visited the U.S. they've also painted a pretty dim picture with the general consensus that everyone still believes it's pretty bleak. A lot of vacancies in the commercial and retail sectors over there even entire vacant buildings. As they came back to Australia they notably pointed out the different environment we have over here.

All vital information if you ask me. I continue to build my short GBP position for the time being.

Cheers again!

Hi
Uk rates are expected to stay low for a couple of years now. It's predicted that rates will stay 0.5% until 2011. With such gloomy outlook gbp is good target for future carry trade. Look at Aud/gbp.

So very true.