The exchange rate had nothing to do with the riots - the drop in the rate (which was only small anyway) was entirely down to the Eurozone crisis, and in a crisis the $ is always seen as a safe haven - although at the present moment in time the £ seems to be viewed just as favourably it would appear to me.
Even after the financial goings on last week, the £/$ exchange rate more or less stayed the same, and over the last couple of months the trend has been upwards. However, with the signal from the US Fed that they are going to keep interest rates down nfor 2 years, IMO that will mean the £ may even rise against the £ in the short to medium term.
The cuts we already have put in place means that the UK are ahead of the curve compared to most countries, and the US in particular, who are going to have to make cuts themselves now. Another reason why the $ may devalue. Could all be good news for those of us planning to go to WDW next year, as prices might start to come down a bit.
With slowdowns in the economies across the world, the oil price will probably stabilise, or even fall a bit, which will also be good news for flight prices - I notice that Virgin prices have dropped slightly in the last couple of weeks for summer 2012, and I wonder if this is down to the drop in oil price perhaps? Any sensible airline operator would be wise to hedge fuel at these slightly lower prices, because when the economy starts growing strongly again (probably next year now), oil prices are only going to go shooting back up.
