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I know USD has been the only one taking beating against other currencies. Seems the GBP has been hit hard as well. Is there growing sentiment against the UK economy and the currency itself? |
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The Kingdom aren't in such a bad state of health really torero.
Both sets of economies (U.S & UK) are attempting to juggle & balance 2 very real threats to their respective forward book levels: Inflation & growth.
Those twin conflicts will cause awful turbulence as one attempts to wrestle priority from the other. Trouble is, both rank as pretty major soothsayers.
The credit crunch has simply magnified & added to the problem. Sure, UK has it’s internal conflicts to damp down, property valuations being one of them, but that was a balloon ready to deflate even a couple yrs back.
It’ll re-calibrate itself & the Treasury will come through it relatively stable. In the meantime speculators will feed from the trough, which is exactly what they’re primed to do.
The Chief Bank have got themselves a half decent management team in old Merv King & his merry gang of bandits.
Currencies, as with most classes, find their own fair value levels. When the sterling is good & done flushing thru the pipe, it’ll let us know.
Till then, ratchet it back & forth along it’s range boundaries & let the powers that be worry bout sailing the economic ship!
There are some very clear & tradeable levels on the Pound (v/s the buck) to get stuck into. The volatility is also opening the ranges v/s other pairs too, as the respective economies blow-off against each other.
All good food for the speculator & those prepared to cast their lines out
