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The exchange value of GBP floats. The exchange value of GBP is not simply dependent on EU demand for GBP commodity exports PLUS customs duties imposed by "trade partner". There is a big, fat, international universe of currency speculators who sell GBP to extract profit by the pence when trading, say, margin borrowers in securities trading, leveraged CRE purchases, or AG sector swap schemes any given hour of each day. UK has been an international "safe haven" for wealthy investors who'll never buy any UK goods or services but finance. Over the past 30 years UK citizens have been driven into "saving" in the form of RE, draining "real money" in domestic circulation. Economists have attributed 40% of UK income to this industry.

BECAUSE the YoY trend of GBP price is negative, ask: IF demand is directly related to price, where is the "hot money" going instead of the City?

U.S. Stocks, Bonds Fluctuate as Dollar Weakens: Markets Wrap 20 Aug 2017

Diversity is the key to economic and political evolution.

by Cat on Mon Aug 21st, 2017 at 09:32:44 PM EST

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