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Q: How low will the GBP go against the RMB?
The Pound dropped to 8.2RMB today. What does this mean to you?
well, just a guess. come brexit talks mar'17, $1 = GBP1 = EUR1 = RMB7
Curiousdude:
thts a huge psychologicl barrier. lot many things wil play out, businesses restructurin', interventns n speculatns etc. importantly the climate in which 'divorce' talks start.
here the only thin' certain is uncertainty 
well, just a guess. come brexit talks mar'17, $1 = GBP1 = EUR1 = RMB7
Curiousdude:
thts a huge psychologicl barrier. lot many things wil play out, businesses restructurin', interventns n speculatns etc. importantly the climate in which 'divorce' talks start.
here the only thin' certain is uncertainty
For me, it means the end of my business interests in China. I am self employed. My main clients are two UK based companies who pay me in GBP. The double whammy of a substantial rise of costs in China combined with post-Brexit GBP to RMB exchange rates has resulted in a near 25% drop in margin in less than a year.
The FX drop to less than 11 RMB:GBP is still clear in my mind. I remember how bad I felt when the exchange rate hovered around 10.5. I said at the time, if the FX rate falls below 10.5, it really is time to give up in China. I should have pulled out at that time. I didn't and now I see a trend towards 8 or less.
I might as well be teaching English now and at least be paid in RMB.
Sterling will be volatile till the matter with EU isn't resolved, however IMO, EU is not too strong and it is facing its own demons.
I'd say, beside creating another/new strong partner (GDP) in Western 'suppression' of 'against-west-economies' as US$ is loosing the steam.
One of the biggest reasons for Brexit was very weak EUR.
Rmb and other up-coming currencies must be 'equaled' so I wouldn't worry much about EUR:GDP parity.
Friday night news on GDP was 'flash-crash', but as it looks the 'algorithms' are to blame and not the big seller.
GDP dropped over 6% and it recovered later....
It's called 'fat finger' in traders lingo, when security suddenly drops big time and triggers 'stop loss' orders, which automatically increase drop of security.
Here's an article on Friday's GDP drop:
A Look Inside The Pound Flash Crash: What Really Happened In Those 30 Seconds.jpg)
At just after 7 minutes after hour, whether 7pm on the east coast, midnight GMT or early Friday morning in Asian trading, pound sterling plunged by more than 6%, in the span of 2 minutes although the bulk of the plunge took place in just 30 seconds: from 7:16 to 7:46, when the market became "disorderly" in technical parlance, or in simple terms, broke. Here is what happened in those 30 seconds.
It's early morning ... I can't type ....
Trading pro's never look back as 'how it was', but only 'present and future' and regular folks mainly look at 'how it was'. Wasting of time, IMO.
icnif77:
Beginning of negotiations between UK and EU is close about 'how to Brexit ...', and Frog-Holland said on some conference a day ago: 'UK must pay price for Brexit .... and similar'.
There's one comment I want to share:
Looney Oct 7 2016 1:24
... EU wants 'Blood Revenge'
Will they start throwing bloody tampons at each other?
Looney
EU is much weaker than UK! i.e. 'buy Sterling on every dip ...'
I am not too familiar with trading on FOREX, but I get into Pound as soon as I have some extra Rmb ....as traveling savings.
