Posted tagged ‘David Cameron’

Clegg Puts Spanner in Election Race

April 16, 2010

The pound fell broadly early this morning on the foreign exchange market.  Why?

Last night the three main political parties took part in a television debate, with Liberal Democrats leader Nick Clegg winning the majority of audiences.  While Gordon Brown (Labour) and David Cameron (Conservatives) may have been expecting an easier ride, Clegg used his moment in the spotlight to appeal to viewers and the studio audience with what he hoped was a fresh approach.

But while the Lib Dems might be enjoying their newfound popularity stakes, it does throw a spanner in the works for the outcome of the general election.  With Clegg’s new level of support, the other parties will once again be left in a very similar bracket – meaning a hung parliament is back on the cards.

Once again, investors are wary of the pound.  Once again, the election race takes a new and interesting twist.

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Pound Stable…for Now

March 11, 2010

The pound managed to stay flat against the US dollar and the euro in this morning’s trades, as currency exchange traders lost momentum on sterling sell-off.

However, more weakness is forecast for the pound…here are some the reasons why:

Gordon Brown VS David Cameron – no clear winner

The upcoming general election looks set to result in a ‘hung parliament’ – a situation which means no party is a clear winner over the other.

Weak UK Economy

It seems as though fresh data is announced every week, and lately much of it isn’t exactly ideal.  The most recent numbers to cause investors to avoid the pound were those showing worse-than-expected manufacturing output.

Poor Public Finances

Actually, the deficit in the UK isn’t that far off from that of Greece.  Gordon Brown has now called for civil servant pay freezes – but is it enough to stem the problem?

Pound remains Low

February 9, 2010

The UK high street had to deal with poor sales figures in January – overall retail was down to its worst level in 15 years in what some analysts branded an “awful” start to the year.

But while physical shops were suffering low shopping numbers (compared with the year before), online shoppers have been out in force – sales were better than ever.  Is it just the cold weather that is stopping us from hitting the shops?

Meanwhile the pound is still having a hard time, dealing with the nervous sentiment surrounding it – and its country.  Britain still has the heavy debt problem which is being compared to that of Greece.  Politically there is much uncertainty, as the erstwhile surefire-winner Mr Cameron (of the Tory party) sees lower support – could Mr Brown win the election?  Currency exchange traders are staying short on the pound, although it did edge up in this morning’s early trade (London session).

Pound Retreats

February 1, 2010

A new week, a new….tumble for the pound.  This morning in the London session it fell against the US dollar and the euro.  Traders are anxious in advance of the Bank of England’s decision on whether to extend the asset-buying programme or not (for which 200 billion pounds have already been set aside).

If the Bank chooses to continue the scheme, traders have warned that there will be some sharp pound-selling to follow.  Fingers crossed then…

Meanwhile, Gordon Brown and David Cameron will be stepping up their campaigns after two seperate polls found that there would be no clear majority in a general election.  So far, many had thought that Brown’s days were numbered and that he was unlikely to make a comeback – but the division between him and Cameron on how to clean up the country’s debt problems has left many spectators divided.  Who has the better plan, and who can lead the country back to health?

The currency exchange market will want to see a clearer picture from one of the two, in order for the pound to gain any strength off the back of them.

Recession Official in United Kingdom

January 23, 2009

January.  A time when depression hits hardest, and the end of Winter seems a day that will never come.  Many psychologists have released papers, surveys and ideas about why it seems that moods sink to such low levels during the first month of a year – around the third week is apparently the lowest point.

So really, it’s rather fitting that today the UK is officially in recession.  Yes, we all knew that this was the case, probably since the end of summer, but now it really is cold hard fact.  And more sad (or SAD) inducing is that analysts seem unable to find any positive news on the horizon.  Are they just wallowing or are they really unable to see a better time sometime in the future?

I feel like ruffling their hair and giving them a hot chocolate!  We’ve experienced recession before!  The last time was in the 80s/90s ans yes it lasted around 5 quarters but we picked our way out of it!  There are some who really seem to be enjoying the government’s struggle – although Mr Brown is full of fighting talk today and seems ready to go in all guns blazing.  Mr Cameron is suggesting humiliation like that of 1976 when the then-Labour government had to beg for help from the International Monetary Fund.  He sounds almost like a naughty schoolboy poking fun at Mr Brown’s misfortune.

So now may not be the best time to compare exchange rates – well not if you’re trying to avoid a heart attack – but let us take one minute to think of light.  Summer days, the sounds of bees buzzing, the sun warming your face….doesn’t seem so bad now does it?  Hang in there Britain!