This is a super easy poncho to make.  I used Rowan 100% wool which is a bit expensive but when you put this much work into a project I believe using good yarn is important.  But, you can also use an acrylic.

I also made a smaller one for my niece with a 50 % wool and 50% acrylic yarn.

I love the colors in this yarn.  The pattern is taken from Book 1: The Knit Stitch Inspiration & Instruction by Sally Melville. 

You basically knit two rectangles, sew them together with yarn and make the fringe.  An easy weekend project.  I used size 13 needles-four skeins of chunky tweed by Rowan.

Here's How~

Gauge:  10cm, 4 inches = 9 stitches.

Cast on 32 (37, 43, 48, 54--this is for sizing) stitches (sts).
32-Extra Small Size 4-6 Child
37- Small Size 8-12 Child
43-Medium Size - Small Woman
48-Large Size - Medium Woman
54-Extra Large - Large Woman

Knit all sts, all rows, to 48 (53, 61, 66, 72) garter ridges. 
Bind off.
Make the second piece exactly as the first.
Hand wash and dry flat.  Use Woolite or Eucalan (can be purchased in your local knit shop)
Determine the right side (RS) of pieces and do what follows with RS facing.
Place rectangular pieces perpendicular to each other so that the bound-off edge of one piece aligns with the ridged edge of the other; 7 (7,8,8,8)", 16 (16, 18,18, 18) ridges, should remain clear at the top.  Sew 1 bound off st to each garter ridge.  Fold pieces to align other bound off edge with other ridged edge and sew second seam.  There is now a v-neck opening at the top. 
Attach fringe and your finished!
If you have questions please email me maize@maizehutton.com!

You can order the yarn here.  The color is 081 "Shriek" 
Here the two rectangles are laid out to stitch the first seam. 
Now, take the end of the left side and fold it over to meet the edge of the right side.
Fold the top of the left rectangle down to meet the left side.  Stitch up the seam as you did for the right.
See the V at the top?  That is your neck opening.  Now you can finish it with the fringe.
Easy to Knit Poncho