What is the main reason for the sterling slide?

M

marshmallow

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I know the UK are entering a downturn same as the rest of us, but why the sharp move this week in particular? 80 - 86 over 4 days!
 
Presumably their 1.5% interest rate cut last Thursday week?
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That would be my first thought to, but it has been sliding for a while before that and seems to be continuing even thought the ECB has also dropped 1% in the last while so it's very hard to understand whats happening, it is now at parity with the Punt
 
I read that something like 70% of the UK economy is financial and other services based. In a world-wide downturn, these areas are likely to do badly. So the fundamentals in the UK are looking kind of rough for the next while.

Add to this an element of capital flight as debts denominated in other currencies are paid down while deleveraging takes place.
 
How long will the momentum keep up? I am buying a new car in Northern Ireland in March of the new year. Will I buy my sterling now or will I wait until March that it will come down further?
 
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