Is there going to be a(nother) run on the Pound next week?

[TimberWolf]

Nice simple poll to test your collective financial genius, or equivalently your luck in predicting 50/50 events.

[scooterscot]

I hope so from next week I'm earning Euros....

[TimberWolf]

The strength of the Pound next week and on towards the election may not be improved by a poll out today, showing the Tories only 2 percentage points ahead.

[TimberWolf]

Incidentally I received the information I ordered from First Direct about foreign currency accounts yesterday. I think I will used them, as I am an existing customer and this would save the hassle of opening up a new bank account elsewhere and needing to provide authentication required. Not sure how safe First Direct will be in the event of a major currency crash though.

They provide Euro, USD, AUD, Canadian dollar (CAD), Yen (JPY), New Zealand dollar (NZD), Norwegian krona (NOK), Swedish krona (SEK), Swiss frank (CHF) foreign currency accounts, paying a very small interest rate on some of them.

[Green Mango]

The choice of the foreign currency is a tough decision.

However, given the current doubts about the £ and the increased risk of another New Labour win, it may be prudent to have some money outside sterling.

[HairyArsedBloke]

This is not investment advice.

The commodity currency's are worthy of further study.

[centurian]

I think the markets are in a state of suspended animation at the moment, waiting for the result on the election.

In particular the ratings agencies don't want to be seen as interferring in the election by downgrading us beforehand (which would basically say Gordo was talking utter tulip) - even though the markets are currently pricing us at a AA+/AA rather than AAA anyway.

However, if a Labour victory becomes more certain, then the markets may not wait.

[AtW]

In particular the ratings agencies don't want to be seen as interferring in the election by downgrading us beforehand

[centurian]

What's so funny. Rating agencies still have a few sizeable dents in their reputation from the credit crunch.

If they were to downgrade us now (or announce a ratings review), the Labour spin machine will unleash everything they've got against them saying that they are trying to get revenge on Labour for the mauling they have been given by politicians for failing to do their job properly in the boom (which to be fair, they did bodge up).

Whether this is true or not isn't the point. It's politics and the ratings agencies haven't got the stomach for this right now. They'll wait until after the election, so that any flak that comes their way will be the "normal" type that they deal with all the time.

And to be far, they have been dropping quite a few hints over the past 12 months, getting less subtle each time.

[AtW]

If they were to downgrade us now (or announce a ratings review), the Labour spin machine will unleash everything they've got against them saying that they are trying to get revenge on Labour for the mauling they have been given by politicians for failing to do their job properly in the boom (which to be fair, they did bodge up).

How many of those rating agencies are UK based?

They could not give a tulip about Nu Liebor.

The reason they don't downgrade a whole list of countries is because Western Govts (including USA) leaned on them - UK's voice in this is by far not the most powerful.