VIX, Oil, BRICS & Sterling's Sell-Appeal

Redstone,

REALLY?! :) Because I keep reading how they're anti-EU...and hoe paying X billion/annum towards EU is a waste...and how G. Brown has wicked designs to (eventually) replace the GBP w/ the EUR!

However, ONLY today was a reading on FT how they're willing to make pro-EU 'provisions' for the sake of the City. But really, do they do this only to win elections?


Asad

Spec,

Say, the Torries win...perhaps their anti-EU stance could weaken GBP? And their militant approach towards the FSA and the City? On the flip side...they would consider slashing the 50% tax thing.

But you'd no better - just my reasons for a weaker GBP...


Asad

i think regardless of who wins the election the pound will continue to suffer especially against dollar. Nobody believes in politicians and neither do investors. What will drive sterling is interest rate differentials (plus QE) and risk aversion.

For now, the uk faces a 50% income tax rate for certain high earners!! what a joke. The fiscal position remains awful and is a structural flaw which no politician can ease over-night. The country is still very prone to speculative attacks over sterling. Too much sterling liquidity in the markets...

Spec u could be right . British electorate fed up with brown and feel betrayed by cameron over lisbon treaty and lib dems offering tax breaks to we poor people and huge numbers flocking to ukip and bnp. Ashrafs theory looks bang on, a hung parliament and huge downside in cable.