Why the Pound is Having a (Surprisingly) Good 2023
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- Опубліковано 10 тра 2024
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After the pound collapsed under Liz Truss, most forecasted economic doom and gloom for the UK before Sunak's arrival and, since then, the pound's value has continued to rise. So in this video, we break down the three reasons behind this recent GBP rally.
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1 - tradingeconomics.com/united-k...
2 - www.bbc.co.uk/news/business-6...
3 - www.bloomberg.com/news/articl...
4 - www.bloomberg.com/news/articl...
5 - www.bloomberg.com/news/articl...
6 - www.ft.com/content/1dc057df-2...
7 - www.ft.com/content/978cfb1d-6...
8 - www.bankofengland.co.uk/-/med...
9 - www.reuters.com/markets/curre...
10 - www.ft.com/content/bac99024-5...
00:00 Introduction
01:06 What Happened to the Pound?
02:39 Why Has the Pound Rallied?
06:24 What Happens Next?
"The Truss Era"
It was only like 40 days but it sure felt like an eternity
from abroad it felt a lot like a weird fiction, just being .. real...
i really don't see how any of her team with a basic knowledge of economics ever thought that policy was gonne work when implemented so drastically O.O
It was like a nightmare that you were trying to wake up from, but suddenly realised you were already awake. That's a daymare. 40 days in the wilderness. It reminds me of a painting by Dürer.
@@JeroenJA Many members of party knew and sunak predicted exact line events while debating with truss for election, but they didnt want sunak so they picked her.
However, I don't remember anyone calling it "an end of an era" when she resigned.
I suppose that's the "impact" she wanted as the "hurricane"
So Sunak is basically doing okay because he's not Johnson or Truss.
Yep
because, this is what he studied
true
@@kingplatform2255 yeah best commment so far.
It's all in the math. Quite simple really. . . 😂
Sure, we 'technically' avoided a recession, but it sure as hell doesn't feel like it when we're now desperately struggling to put food on the table and keep a roof over our heads.
Yeah. We need a general election. Everyone has suffered long enough under this useless lot.
Yeah but line go up so we're all fine ykno
you guys are getting roofs?
Inflation up, growth flat.
In real real terms we might as well be in a recession.
I love tinned sardines, it is one up on the baked beans I was eating under labour in the seventies
Wow, a UK UA-cam channel that has something positive and encouraging to say about Britain! Must be something in the UK water. Usually, no one outdoes us Brits for dumping on our own country. It's a national pastime. Nice to hear some good news for a change.
Rare comment yours. Most of the people in the comments are sad self hating sodding bastards. They can’t stand the fact that something good is happening in our wonderful nation. They hate the democratic system, they hate the monarchy, they hate every single thing.
higher interest rate= good luck on ur mortgage mate
If one person is dumping on something, it could well be that person. If you notice *everyone* is dumping on something, has it occurred to you that the problem might be with that something?
Even indians
@@Ealsante What a patriotic response! Bet you read the Quisling Guardian.
Totally agree Sunak is so much better then other Conservative leader or any other leader. Who only speak but do nothing good. He is a very rational and balance approach. I am sure by next year pound should reach near to 1.4 💵
Time to report all illegal immigrants including indians too..
He is a conservative, you're comparing a steaming pile of shit with some mud in the ground
Meaningless waffle from Indian fanboy...
@@thecrimsondragon9744 why u crying out of ur panty . Pound is now 1.5
I am actually suprised Sunak managed to handle the shitstorm. Britain is not in the clear yet, but i wish them good.
Can you really call recovering from Truss tanking the pound "doing so well"?
It's still worse than a year ago
It's like BoJo the clown's of repeated fib. "Fastest growth in the G7!"
Just don't mention that it's because the UK had the biggest drop in the G7, so any growth is going to look "fast" in comparison.
@@HmudaExactly. like saying they've hired X amount of police officers after getting rid of 20k
The pound is still at 1980s levels. Hardly at the early 00s levels. Oh and who was in power then, Labour. I thought the Tory's were supposed to be good with the economy. But everyone is doing worse and worse under them. General election please.
Exactly. It recovered a bit but it's still bad. Before Truss I was getting 8.8 DKK to 1 GBP. Now I'm getting 8.4. Still better than during Truss. Glad I didn't have to trade during those months.
How naïve are you? Liz Truss had a brilliant budget to our benefit, but the vested interests crashed the market value in response to make us all fear a low tax economy.
I think this is one of the most balanced videos I've seen - yes Sunak deserves some credit for an improved pound, but it's still not as good as it's been historically. Nice job TLDR.
He deserves no credit.
If you read the actual papers, the pound is up because traders are buying it before the interest rates go up, and THEY'RE only going up because inflation isn't falling as quickly as it should be.
So, sorry- if this is actually Richy Rich's doing, it's due to either viciousness or incompetence.
@@peterclarke7240 he deserves one for keeping his mouth shut
if you watch EUR/GBP , ever since it's fall in 2016, the pound has never bounced back up to the exchange rates of 2014-2015 when almost everone assumpted the UK would certainly vote in it's own self interest to stay in the EU..
2016 , at the start : 1 pound was 1,3 euro, = lower then 2015 ..
end of 2016 :1,2 ,
and ever since the pound largely stayed between 1,1 and 1,2 euro per pound.
i don't get why the UK focusses more on GBP/USD exchange rate..
that contains a lot more of fluctuation that affect the whole european continent, like all of europe was later and slower to higher up interest rates to combat inflation...
@@peterclarke7240 imagine being so ideologically programmed like an AI bot that you lack the critical thinking to see the pound went up 5 points right after he became PM. Not to mention the world bank to almost every major economist says he steered us away from recession. If you honestly think starmer a man who reversed or didnt deliver on anything he pledged to labour, could have done bettee or even half of sunak economically. Youre deluded.
@@peterclarke7240 ⬅️ it's what he said, nothing to do with a Tory master plan.
Their actual master plan is to stay quiet until the GE and hope people forget their lives used to be ok before Tory austerity.
How it's going - The PM, deputy PM and previous PM are all being. investigated. Doubled Dept, highest cost of living in our lives, 7.5 million waiting on a collapsing NHS.
"Sunak deserves some credit" 👀
I have to give it to Rishi Sunak. He’s given us exactly what we needed from the UK Economy. Stability leading to growth!
After Truss, anything anybody did wouldve been better than her insane economic tactics.
Wasn't insane dude, it was a pantomime horse😃
Rubbish
Yh thank god bro
Indian hand
This is like saying someone is doing well because the previous person shit their pants infront of everbody and Sunak has so far managed to just fart alot whilst standing in the shit she left on the floor.
Perfect analogy
If you want a PM that can improve the economy to the point that it's better than when it was during the pre-pandemic era especially after what Truss did then you are probably asking for Jesus Christ to be the PM.
You wouldn't have needed Jesus if you guys never voted for Brexit in the first place.
🤣🤣
Sunak "I did not follow through"
While true truss doomed everything, sunaks not been asleep like boris would have been. He’s being pretty fiscally responsible. Certainly more credit deserved than zero.
I think RISHI SUNAK has inspired trust among the people are involved with finance, that helped pound to recover faster & pound will strenthen further !
The United Kingdom has enormous economic potential !!! The British will surely recover !!!
Greetings from Brazil🇧🇷💖🇬🇧✌
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Pound still doing rubbish
Live in France and we still only getting 1.13€ / £ when 18 months ago was getting 1.20€
yep it sucks
Don't look at £vs$ in the early 00's compared to now. You'll really cry. $2 to £1. We're basically back at 1985 levels. Since the 2008/9 crash the pound has been under performing and it hasn't come up properly since it fell in 2016 because of Brexit - thanks Tories.
It takes time for it to rise. How could you expect a surge 🤦♂️ In terms of performance, the £ has been one of the strongest performing currencies
@@RRaymer US debt is limiting fed head-room for rate rises, making Sterling more attractive to investors looking to hedge. This will help lower inflation, and stave off larger rate rises that could push the UK towards recession. However, long-term stagnation in productivity continues to eat the UK, caused by two factors; 1) the aging population & welfare burdeon, 2) lack of investment. The latter has been rectified by Sunak, however private investment has never recovered since '08. This is why pension firms almost bust under Truss; they're too heavily bought-into Gilts rather than investing in FTS100/250 & VC startups.
@@idontwanttopickone if you look at the history ,
between 2008 and 2016 varitations from just up of 1,4 to lows just under 1,1 ..
2016 , bexit vote year : from 1,4 down till under 1,2, ever since the GBP/EUR exchange rate seems to have sayed relly stable, only ever temp going out of a 1,1 till 1,2 margin!!
past 5 years, highest 1,22 , lowest 1,06 ...
between 2008 and 2016 you had higher variations in a year then we have had the past 5 years combined.. and that lowest was march 2020, thus only due to covid market overreactions! ..
We would be making a big mistake to write Sunak off. His manner is well measured and, in my opinion, reliable.
Didn't play out that way sadly, he's a wet blanket, i hoped he would be a change, but no
@@noeyes6151 atleast he keep his mouth shut & let the economy be stable. Its better that previous jokers.
@@darknebula455 🖕 fantastic reply
It may look like the Pound is doing well on paper, but I am still having to work extra hours in order to afford the basics like food, fuel and house-hold heating. The measly rise in the minimum wage, while yet to hit my pay packet, is nowhere near the amount it would need to be raised to give working hours a more normalised value and prices continue to rise in many areas still.
It's crazy when you go in the next day to find everything you bought the day before is more expensive. It's gradual but costs are increasing faster than the government can react. It's like watching a race between a KA and a Mclaren.
Probably because the Bank of England is trying to do something about inflation by raising the interest rates. I would not say the economy is in a fantastic spot though, inflation was supposed to be under 9% at this point, at least according to the Bank of England. Once the housing market starts to really get into trouble, I think the Pound may slip a bit.
It will be interesting to see what happens to the Pound once interest rates start to decline....whenever that is.
interest rate declines probably will be reactionary to recession :)
When inflation starts to fall, interest rates will too.
The UK is phasing in the border checks it was supposed to phase in after leaving the EU, starting in November in 3 stages until November 24.
This will effect produce prices again, as imports have been largely unaffected by Brexit up to this point. The UK public are the proverbial frogs in the hot water.
There's always a cost and that's going to be inflation for the many.
The rich don't care.
Hilariously the BOE could be doing more but fears the housing market would take a hit so it’s doing almost nothing
@@jamesgrover2005 Thats the theory, but central banks have always been reactionary. There wont be one time in history you can point to where inflation fell without a recession and the central banks lowered their rates. I think reality is UK is royally fucked, if a wage price spiral happens anywhere it will be here.
@@Theonevidz Its a bit tough for them tbh. The housing market is really on the precipice of a crash, but they also know that they need the investment of a strong Pound due to Brexit. So I really dont believe the BoE when they say that inflation will have a sharp decline at the end of the year at all. Especially since OPEC just reduced oil supply at the start of this month.
Either way, we are in for a rought ride, unless you are rich of course.....
All credit goes to sunak leadership
Really like this guy as a presenter. Best one on this channel I think
Great journalism, knocking on the door of documentary status.
So basically to summarise Sunak has managed to improve the pound by shifting its value very slightly up from a few months ago when it was at it’s lowest rate since decimalisation. Largely due to the rates set by the BofE anyway. (An independent body).
Moral of the story follow someone who sets the bar so low you can’t possibly do worse. Sit back and take credit for the improvements which come in in spite of you.
The real summary is that US debt is limiting fed head-room for rate rises, making Sterling more attractive to investors looking to hedge. This will help lower inflation, and stave off larger rate rises that could push the UK towards recession. However, long-term stagnation in productivity continues to eat the UK, caused by two factors; 1) the aging population & welfare burdeon, 2) lack of investment. The latter has been rectified by Sunak, however private investment has never recovered since '08. This is why pension firms almost bust under Truss; they're too heavily bought-into Gilts rather than investing in FTS100/250 & VC startups.
@@mramg6038 'Welfare burden', Ah, yes, put the onus on people who work full time but can't afford to feed themselves and need goverment support because wages are shit as the problem.
Maybe the actual cause might be in consideration, like how the vast majority of wealth in the country is concentrating in the few, who then squeeze all they can from the actual value generating population? No? Okay, we'll keep getting fucked in the arse for another decade then.
And which party gave the BofE Independence?
LABOUR.
@@mramg6038 burdeon=burden?
No this is a pessimistic Marxist summary, if people like you ever got into power we wouldn’t even have the pound Sterling, you guys are a joke.
4th reason - the appreciation of the EUR against the USD. Against the EUR the pound has hardly budged, up to 1.13 against 1.11 during the "Truss Era" (felt like longer than 7 weeks for me too..).
Careful - the pound in April has mostly been above $1.24 but not 1.25. Also $1.03 was only an intra day low - not a close , which was more like $1.07. The time the pound was over $1.40 was more to do with dollar weakness than the pound's actual strength.
It was 1.25 for a day a week ago
@@aaroncousins4750 one day is not all of April though !
77 US cents just in time for the general election?
Why do people keep saying the dollar and not the US dollar? because several countries use the dollar, not just the US. It could have been the Hong Kong dollar or the Australian dollar where the ￡fell to $1.03 for all we knew.
what's the deal with the double spaces?
@@WinampVEVO innih
Tbh Truss crashing the economy and Sunak coming to power soon after gave me some of the best stock market results I'v ever had in such a short time frame.
"The trick is to spend most of your effort to make game AI not do something stupid. If you do that, it appears pretty smart." - one of the C&C makers.
Fitting comparison. There's even a Boris in that universe lol.
That game was cool👍
Despite not being a Tory or labour supporter I did have faith that sunak would somewhat reverse what truss did because he knows what to do when moneys involved.
Sunak is basically the guy who didn't fight the fire burning in your room. When you compare him to the person before who set the fire, he's not that bad at all, but...
No "but". If you look at that compared to the baseline politican (who will shoot you for trying to put it out), he is worth celebrating.
He's not really doing anything overly positive but i'd happily take that over the average politican
That's because he has remembered what being a Conservative means. Their job isn't to bring change or revolutionise something, it's actually to do nothing at all... except sell off some public assets.
This is like saying "Good job, you set fire to the building but you eventually put it out".
Ooh! That is a great analogy. :D
Yeh this channel/ presenter is one of the best because he always tries to give a balanced approach. He keeps his emotions out of his work.
There's a difference between a dispassionate style, and being "unbiased".
I think it should be law that the Chancellor of the Exchequer should have some formal qualifications in finance and higher qualifications in maths; A-level and above for instance. That shouldn't be too much to ask, seeing as that position basically affects everything else.
And you think they don’t?
Four of the five last didn't, and the one that did was a disaster.
@@eddiecalderone Working in it isn't what was being discussed though. The OP said "formal qualifications".
If you're going to smugly correct someone then your reading comprehension is really going to need to improve.
And yet average families are still struggling to put food on the table, energy companies report record profits whilst elderly people can't heat their home, and Im waiting 4-6 weeks to get diagnosed with chrones disease.
Took me a year and half to get diagnosed… the NHS has been, is, and will always be absolutely shit compared to any other first world healthcare system.
@@Witnessmoo You do realise that it's all part of the Tory's plan, right? They want to see the NHS fail so they can push for privatised healthcare.
@@Witnessmoo the US is worse surely - the NHS is free while the US hospital bills for people on average, are extortionately high.
@@xwyvern58x9 US healthcare isn’t bad. I don’t get why people think this… yes it’s expensive but the quality is one of the best in the world and unless you are really poor it’s still affordable, especially since most larger companies provide health insurance for employees. Also the NHS isn’t ‘free’, you pay for it through taxes, and the fact that the system is public means it’s far easier to abuse, both from a managerial and consumer perspective.
These are long term problems - longer term than the economic cycle.
God bless Britain 🇬🇧🏴
Got my economic exam soon and this is some good application- thank you
It's important to remember that "emerging market" is the term used to describe small unsophisticated economical systems that are driven by non-modern forces and we only use "emerging" to signify that we expect them to improve. When a country has a modern strong economy and then declines to the equivalent of an "emerging market", we call it something else.
What do you call it?
@@livonian_knight9351 a country in decline; a fallen empire: stuff going to sh!t. Take your pick.
@@guss77 fallen empire sounds better
Awesome mate and Love your videos.
"Don't try to be better than others. Just try to be better than your yesterday self"...
.. seems to be the UK's newfound motto.
Simple - Truss becoming PM wasn't "part of the plan". Not when you consider Sunak spent the previous 8 months running around the world telling his friends he was gonna be the next PM in the leadup to Boris' resignation.
In fairness she was terrible at her job. Even if she wasn't the prefered candidate no one expected her to be that incompetent and ignorant.
He is too good. Tough times for a PM
Recently Wion mentioned your channel, TlDr, and said it was like kids from Howard's doing news
Wion is kinda based like that
Dion is a bit racist
Hmm. I don't know. I'm currently working a lot in both Euros and pounds and the exchange rate doesn't look good for the pound. It's only slightly higher than the Euro.
How on earth could you say the pound has rallied since Sunak took over .
On the day he became prime minister the pound was trading at €1.14 it is now trading at €1.13 .It has improved against the dollar it has gone from $1.16 to $1.24 but the euro has performed as well if not better against the dollar
Exactly. It stabilised. With Truss or Johnson the economy almost collapsed. People trust their money with economists not clowns.
@@usg4357 the economy never came close to collapsing under Johnson.
@@kordellswoffer1520 He cut so many services that were imperative to our country’s reputation and growth. He pulled away the cushion away from the backs of the most vulnerable in our country and almost succeeded in making the NHS private.
These politicians are not your friends and you couldn’t even comprehend how much money they are making while you fight your fellow man over petty things.
A country with such a long history and greatness almost brought to its knees by power hungry people and their friends. Its the same story all around the world but the way it was all done was genius. Slowly cutting expenses from public services and pocketing the difference, while the people fought across the country and social media over where who came from where, the successfully got away with a massive heist.
Now its on the mend but this damage will not be repaired quickly. It will take a minimum of 5 years before the UK sees growth like before.
@@usg4357 petty things. The worlds not a big conspiracy and not everyone’s out to work against you. I don’t like the NHS nor do I support it. The country was brought to its knees a long time ago while people like you shook your head and said yes more. It’s people like you that said that’s ok because at least you’ll give more pounds to the nhs. Our great nation is not great cause it has the nhs or other vague notions of public services. And the moment you the country realize that the better. The way you talk it sounds like you don’t think mass migration is an issue. The uk has grown faster than at any point in the past hundred years post covid.
@@kordellswoffer1520 what world you live in. By the end of Johnson time, the damages were done anf he didn’t listen to to Rishi Sunak which resulted badly and Rishi resigned. Truss came and continued Boris path and that just killed it. Who had to clean up the mess? Rishi Sunak.
At least Sunak and his team did some decent work unlike others.
If 'decent' means getting us from rock bottom, that's hardly call for praise. Meanwhile out in the country: People fighting to pay for food and electricity, food banks overwhelmed, homelessness doubled, people being threatened with evictions because they're so in debt due to being unable to pay for bills, etc, etc, etc. This is not ok.
Man, I miss the lettuce 🥬😢
Now there was a leader!
I miss the cat.
I'm personally more concerned how it's doing against the euro. And frankly there is absolutely nothing to brag about! 😡
Steady on. When I was very young there were $4 to the £. That's a measure of our relative decline long term.
Yeah that was before the UK joined the EU and was the sick man of Europe and that's what it is going back to.
Interest rates are high but pre-Brexit the £ was worth $1.50.
Pre brexit the pound was €1.6
Correct, Brexit has killed-off private inwards investment into the UK. It also created a capital flight from London as the CoL loses the control over the Euro exchange derivatives market. One could predict a long-term slow decline of the UK into obscurity, like Italy.
Back in 2006 the £ was worth $2. Ideally the the exchange rate should be a round $1.40 to $1.50.
Rishi is a miracle worker 😮
"Moron premium" I love it!
Truss "era" is being generous 😂
Compared to the Euro it didn't move at all so no cheaper imports!
Without sounding like a brexit runaway, the UK been a mature economy is never going to hit growth rates of many less mature countries and comparing the UK against the G7 is fair, but if the world economy does well, the UK has more tourists and this increases consumption and GDP will rise because of it (airlines, trains taxis all get a boost of customers) restaraunts, take aways, snack shops, all of these were hammered in the lock downs and with WFH also holding back all these industries will and has reduced the GDP. The UK has to improve its foreign trade and this takes times, probably 3 years before we start to see additional trade with the new FTA the UK has recently signed.
Good insights.
Going to japan in July and the USA in aug as long as it keeps going up that’s great last time I was in Japan it was 127 to a pound now 167. We’ll done rishi
49 days don't make an era, just the blink of an eye.
"Even a dead cat will bounce when dropped from a great height".
The tldr of TLDR: Nowhere to go but up.
regarding polish zloty british pound has very poor course ratio
Poland has been investing well, & has a better population age demographic. Zajebis'cie.
The takeaway from this is that it’s worse than a year ago but it is not as bad as it could have been
It's worse than 2007 to 2010. Not just worse than last year.
The worst under Brown was still better than the best under Sunak.
There was always going to be a period of adjustment after the UK left the EU, so I am not entirely surprised. While I believe the global recession will continue to get worst in the next 18 months, factoring this out I would expect the UK will slowly recover as it adjusts to its new economic situation. For example, the UK joining the CPTPP will assist in the future, however how long this will take is anyone’s guess.
I think if we can keep the EU happy somewhat then who knows... we have tone down the rhetoric to allow for better things.
If someone survives jumpimg off a cliff but only remains permanently crippled does that mean they're "doing so well"? Rather than GBP to USD I tend to look at GBP rates to EUR and looking at average rates it seemed to regain a bit in 2021and 2022 but is not doing very well in 2023 so far. Average rates 2015 1.38, 2016 1.22, 2017 1.14, 2018 1.13, 2019 1.14, 2020 1.13, 2021 1.16, 2022 1.17 and 2023 to date 1,13. Current spot is 1.1346 and rising but it's not a very encoraging trend this year so far.
The pound is also rallying because the FED are planning to slow down interest rake hiking but the UK will have to continue as inflation is not under control.
.... TBC :)
The FED has not slowed down interest rate hiking. You're making stuff up.
I have to disagree, Sterling was at 1.13 at the beginning of the year and is at 1.14 today (1.13 on Monday) so it is just not further devaluing.
It’s the trend they are talking about. This is nursery grade math when you talk about fixed rates at 2 different times. Please use common sense and refrain from incredibly illiterate takes
@@RRaymer they used the date of 30.12.22 in their example and the trend isn't positive either. You have a downwards barrier around 1.10 and upwarts around 1.20 and a a one year average of 1.15. In this month gbp traded between 1.15 and 1.12. So where exactly is the trend?
I've done forex for a few years, so I know a littele bit about this stuff.
The gbp trades alongside the euro which rallied against the usd. The video is under the false impression that the "sterling rally" has anything to do with Britain. It is a "Euro rally" which is primarily caused by low usd inflation numbers and cheaper energy in europe than expected.
It breaks your heart that a Tory government might be doing something right
Rishi sunak has proved that he is better than lizz who was selected over rishi
And still he won't be eleceted again
I feel that the pound didn't really have anywhere else to go, but sunak has done some good things while in office. The upcoming elections in the UK will be interesting for sure, with conservative polling somewhat recovering
UK will surelly achieve its objective of becaming 11th largest economy by 2027, from 6th today
😂
The UK remains the G10 economy most heavily affected by the pandemic. At its trough, UK GDP was down just over 25% in April relative to January, and while output has bounced, it remains well below where it was before the virus - around -8.5% relative to the start of the year according to September's GDP print figures.
UK must thank Sunak. He might have just saved it from drowning.
We have to thank charismatic, Hardworking yet Smiling Rishi for his competent Leadership.😊
I'm 99% sure this post is sarcasm, it's the 1% chance that haunts me
@@jamesgrover2005 lmaooo for real
@@jamesgrover2005 it's mostly real, see how stable the UK is under him compared to before he became the PM.
Pound Sterling, Windsor framework, relatively stable economy are all his achievements.
@@jamesgrover2005 he didnt get to where he was by being a dumbass. His parent came from a upper middle class background. He's not an eton toff.
@@NaSaSh1087 food prices don't feel stable at all, they keep going up, as do rents, bills, transport, etc. I'm not sure who benefits from a rising pound but it's not us regular people with regular jobs paying extraordinary costs for just living :(
Awesome. I knew Hunt created a very good budget in spite of the party he works for but that is great news.
Just take a look at the graph for the last 13 years or even the last 25 yeas.
GBP lost 3% of its value against the euro compared to 10 years ago, 19% against the USD. If you go further back in time the losses are even bigger, yet here we are with idiots praising the "strength" of the GBP.
When are we officially joining the new trade block i cant find much information in it,australia hosting in july i think,will it be then?
Thanks for sunaka
Saying what is happening, as the pound is 'doing well', is akin to describing a floater.
All that self-inflicted harm 😢 ERG,Media and the think tanks have a lot to answer for 😤😤😤
The pound is having a 'dead cat bounce', when however low something falls it has no where to go but up....
The amount of damage Liz did to UK economy unbelievable
Outperform the most pessimistic forecasts? That's the benchmark? About to get some shopping I'll see which prices have noticeably risen since last time from the shops that are left on the highstreet, companies taking advantage and raising prices the greatest single driver behind inflation, now I'm wondering if I should look out for rose-tinted glasses in my prescription.
Got to agree! Sunak was a win-win like a fly on the wall!
Sunak couldn't save his own phone number
🤣🤣
I laughed
oh god, did the Kg lost value? hope the meter is holding well
Can we have a follow up video about how New Zealand has suddenly become member of G10?
0:12 that's more than a little unfair. I'm no fan of Liz Truss but you can't say her minibudget caused yields to quadruple from under 1% to 4% and then proceed to show that the majority of that rise occurred before Liz Truss was Prime Minister (with the
FTSE good run is also responsible for more people investing as it gives FX tailwinds when they sell and convert back into their currency.
I have seen food prices go up. But never have I ever seen super markets reducing prices again. Anyone?
Best performing currency? I just looked up the Pound to Euro course, and it has lost value slightly and fairly continuously since Sunak took over. Sure it isn't as bad as at the peak of Truss economic collapse, but then that was an temporary aberration. It's still worse today than it was before Truss took office, and it is not in an upward trend either.
1 pound is currently worth 1.13 Euros (and even that is a local peak), end of last October (when he took over) it was worth 1.17, and last August 1.20.
Where are you getting your numbers from?
Don't mistake the temporary, fear based peak in Dollar value that is now retreating to baseline, with actual British achievements. The Euro to Dollar course had the same slump and return rise to somewhat normal values with the Ukraine war fear in the financial markets, that eventually dissipated.
That's because the euro is doing much better than the pound. And I'm not surprised, since it's the currency used by countries united by a certain common market...
@@rezzoc91 Yes, exactly. But where do they get the "best performing currency" from then, when even the first other option you'd look at is performing notably better?
Is it really just misinterpreting the return from a peak where financial markets were in a panic moving their money to dollars? Because that is so easy to see in most other currencies to the dollar courses. Yen, Swiss Franc, etc. have that same down and up again movement as well, but as mentioned the Euro also fairly clearly. Pound has still lost towards the Euro & Swiss Franc since Sunak took office, so I don't get this whole video. It's completely wrong.
They are referring to the total return % for the year to date against the USD. As the video alluded to, the data is skewed due to use coming from a point of such economic weakness, however the data is still accurate
@@TheCHOP1999 No it isn't accurate. They said it is the best performing G10 currency in 2023, but both the Euro & Swiss Franc performed better in the same timeframe and they are in the G10, and did so in most other timeframes that don't explicitly start at the lowest point during the very day of the catastrophic budget.
Sunak may have slowed the decline, but he hasn't stopped, let alone reversed it.
I don’t think you understand. You don’t look at fixed points to compare. Currencies are compared against the USD baseline. As the majority of global trade is in $ terms. Over the past 6 months, the £ has increased by 17% against the dollar whilst the € increased by 9%. Thus, we can conclude in the past 6 months timeframe: investors/importers/exporters have favoured the pound over the euro in trading and business - That’s how to make a comparison
Comparing the £ and € is never done in proprietary economics as it’s meaningless and tells nothing
Rishi is doing a great job as PM, pound has stabalized. Inflation will go down to 4% by end of the year. Economy will recover by next year. Recession didn't happen under his leadership. Markets love him....he got the windsor framework passed which will end brexit officially. CPTPP is a great trade agreement. He is the best chance UK has at the moment.
You Indian or British?
Truss should be jailed
Its about time 😊
leave it to the indian guy
lol
i think sunak does save the pounds uk money or maybe how the budget were made good i think
You might want to read an actual news paper.
The pound rose because traders are buying it ahead of the interest rates hike, which is happening because inflation hasn't fallen as fast as the BoE predicted and our prices for things like food and energy have shot through the roof.
Good job, Richy!! 😂
Can you care to explain what was this "mini budget" thing is TLDR?
I dont live in uk.
ahh the april boon, when creative accounting shines.
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I don't know but why being an Indian, news of Britain's falling economy gives a virtuous pleasure😅
That's natural....
I don't know why
It's because you are a sadist . I'm a Indian too, but I would like every country to be stable and growing like my own. Mind you, millions of Indians live in UK too.
And yet regular people see none of the benefit of it rising.
Another thing: it's almost certain we might have (at least slightly) more grown up politicians in government within the next 18 months or so. And the markets must recognise this.
As much as I dislike the tories, I have to give Sunak credit where credit is true.
Edit: *due... I'm not usually someone to mess up this saying.
Well, don't give it here.
The pound rose because traders are buying it ahead of the interest rate hike, because inflation is still not falling as quickly as the BoE hoped for.
So, unless Richy Rich is preventing inflation from falling deliberately to raise the pound, he's only achieved this rise due to his incompetence.
Clark, you are probably just pissed off an not in your right mind 😂.
The £ is improving because of Rishi Sunak's incompetence?! Is that not an oxymoron? There is no form of incompetence that gives rise to good results, it's always something else not the actual incompetence 😂
Why not just say the £ is improving because of this and that and not mention Rishi's apparent incompetence in the same sentence. How difficult is it to say a few nasty words about Sunak without saying something that doesn't make sense? 😂
@@makhosimayisa5800 Well, given we know the cause of the rise in the pound, as I said in my reply, we can therefore either conclude that Sunak's policies are deliberately designed to slow the fall of inflation so that BoE put up interest rates (which would be insane, given how badly people are already struggling with both inflation and interest rates), or it was due to his incompetence at not being able to bring inflation down at the rate that BoE predicted.
Which do you prefer, because neither paint him in a particularly good light?
No
The pound is doing so well because Rishi is at the wheel of the country now Rishi Sunak on top non stop 🤘🤘🤘
Idiot.
The pound rose because traders are betting on an increase in interest rates, because inflation hasn't dropped as much as the BoE predicted.
That means an increase on everyone's mortgages at a point when food prices are skyrocketing.
Do you still want your mate Richy Rich to take the "credit" for that? 😂
Im sorry, there is a G10? Since when?
Sunak has done a pretty decent job since coming into office, I don't think people are mad at him personally, just the conservative party as a whole.
First comment, this made my day thank you
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Congratulations!
The comment only counts if it's longer than 7 words
@@davidcooks2379 more than 7 words now
@David Cooks I am genuinely very happy I have been trying to be the first comment for a while