[QUOTE]The value of the pound has fallen dramatically as it emerged that the UK had voted to leave the EU.
At one stage it hit $1.3305, a fall of more than 10%, and a low not seen since 1985.
Before the results started to come in, the pound had risen as high as $1.50, as traders bet on a Remain victory.
But following early strong Leave votes in north-east England it tumbled to $1.43 and then took another dive after 03:00 BST as Leave maintained its lead.
The move in sterling is the biggest one-day fall ever seen and London's main share index, the FTSE 100, is expected to open sharply lower, with indications of a fall of around 7%.
A weaker pound buys fewer dollars or other foreign currencies, which makes it more expensive to buy products from abroad. However it should benefit exporters as it makes their goods cheaper.
Against the euro, the pound dropped 7% to around €1.2085.
The euro also fell 3.3% against the dollar, its biggest one-day fall since the currency's inception.
Currency traders say these moves are more extreme than those seen during the financial crisis of 2008.
"Never seen anything like it. These are once-in-a-lifetime moves, bigger than Lehmans and Black Wednesday, and we haven't even had the result yet," said Joe Rundle, head of trading at ETX Capital.[/QUOTE]
[url]http://www.bbc.co.uk/news/business-36611512[/url]
Time to buy
Great, I just finished my degree today and the economy is projected to nosedive.
Fuck the financial markets
To people who voted Leave, did you expect this? Genuinely asking, not trying to be an ass about it
Is this bad?
[QUOTE=Killer900;50582228]Is this bad?[/QUOTE]
The economy of a major European nation nosediving is not a good thing, it'll have ripple effects throughout the world, even here in the US.
At this point it's just a matter of how big the ripples will be for each nation.
[QUOTE=Killer900;50582228]Is this bad?[/QUOTE]
You can buy less things if your currency is valued less.
So hell yes it's very bad for the ukers.
I knew I should of made my dad do the weekly shop on Wednesday...
[QUOTE=NiandraLades;50582203]To people who voted Leave, did you expect this? Genuinely asking, not trying to be an ass about it[/QUOTE]
Lots of Brexiters are arguing that this is a short-term issue but everything's going to be fine soon
FUCK FUCK FUCK I have 250 Sterling that I ment to trade for CDN Fuck
[QUOTE=smurfy;50582261]Lots of Brexiters are arguing that this is a short-term issue but everything's going to be fine soon[/QUOTE]
Yeah if we go into recession, Boris has promised to apologize!
[QUOTE=Killer900;50582228]Is this bad?[/QUOTE]
Let's put it this way, Britain is the financial capital of Europe, rivaling new York in terms of market and now it's suddenly no longer going to be part of Europe and nobody knows what comes next in terms of regulations
[QUOTE=Emperor Scorpious II;50582237]The economy of a major European nation nosediving is not a good thing, it'll have ripple effects throughout the world, even here in the US.
At this point it's just a matter of how big the ripples will be for each nation.[/QUOTE]
Stock market in Asia is doing a pretty graceful swan dive at the moment too.
Currency losing over 10% of its value overnight is a very bad omen if if continues that. I don't think pound was that cheap during the GFC.
Now, that being said, there is potential to recover it, but considering that Asia's market tanked and the euro also dropped... Yyyeah. I guess it's time to buy a few dollars.
This is just a short-term kneejerk reaction to the vote going to Leave unexpectedly. I expected this to happen and it'll probably be like this for the next few months before it picks back up, until then it's good for anyone who's exporting but bad for those that are importing.
[QUOTE=NiandraLades;50582203]To people who voted Leave, did you expect this? Genuinely asking, not trying to be an ass about it[/QUOTE]
Didn't the pound drop the second voting started, before any distinctive results were in?
[QUOTE=Thlis;50582412]Didn't the pound drop the second voting started, before any distinctive results were in?[/QUOTE]
It went up by a few percent beforehand, or when the first votes were in, then took a nose dive once leave started getting in the lead.
I wonder how the brexiters who were adamant we would be richer feel now.
[QUOTE=RayvenQ;50582421]It went up by a few percent beforehand, or when the first votes were in, then took a nose dive once leave started getting in the lead.[/QUOTE]
I remember it dropping when everyone was saying narrow victory for stay.
People are still saying project fear this morning, even though we're now seeing the first layer of the actual minefield we've just walked into.
I cannot believe how deluded and gullible this country is.
[QUOTE=Emperor Scorpious II;50582237]The economy of a major European nation nosediving is not a good thing, it'll have ripple effects throughout the world, even here in the US.
At this point it's just a matter of how big the ripples will be for each nation.[/QUOTE]Our currency is likely going to rise and it's probably going to be pretty awesome for us for awhile.
Personally if I had money to spare I'd be readying to invest in British currency and stocks, but the Asian markets are looking crazy too so I'd probably consider that as well.
[QUOTE=smurfy;50582261]Lots of Brexiters are arguing that this is a short-term issue but everything's going to be fine soon[/QUOTE]
Is there reason to believe that it will last long term?
Gotta love these drops in value, no matter if currency or stock. They're like self-fulfilling prophecies.
Everyone was afraid that if Leave wins, the GBP would drop, so they got ready to sell. When it did win, the mass sales started, causing the GBP to drop.
It's utterly stupid if you think about it.
[QUOTE=paul simon;50582532]Is there reason to believe that it will last long term?[/QUOTE]
Well, if it kicks off and the government does absolutely nothing to handle it, or if it gets worse due to an even more radical political and economical shift that you can't really predict, orrr if the trends continue for a few days regardless of countermeasures and rebalancing... UK citizens could be in a huge crisis.
[QUOTE=Doom64hunter;50582542]Gotta love these drops in value, no matter if currency or stock. They're like self-fulfilling prophecies.
Everyone was afraid that if Leave wins, the GBP would drop, so they got ready to sell. When it did win, the mass sales started, causing the GBP to drop.
It's utterly stupid if you think about it.[/QUOTE]
I mean, the UK voting to leave the EU was utterly stupid on a far more astronomical level but that happened too.
Leaving is an economically regressive move that generates a ton of uncertainty for all the industry in the UK, but it will probably level out in a short while but I don't really see it gaining value.
Hell I have some family in the airline industry, and they're concerned and don't know how this is going to effect the open skies agreement
Well, who didn't expect this to happen? It was pretty obvious
[QUOTE=Doom64hunter;50582542]Gotta love these drops in value, no matter if currency or stock. They're like self-fulfilling prophecies.
Everyone was afraid that if Leave wins, the GBP would drop, so they got ready to sell. When it did win, the mass sales started, causing the GBP to drop.
It's utterly stupid if you think about it.[/QUOTE]
It fell because leaving was a bad economic decision.
[QUOTE=smurfy;50582261]Lots of Brexiters are arguing that this is a short-term issue but everything's going to be fine soon[/QUOTE]
Well hopefully that's true, though we have no evidence to support either way. This could be like a rollercoaster, or it could be like a wheelchair in San Francisco.
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