Sunday, 11 January 2009

Pound Sterling

Pound supportive :

Short GBP positions have been very popular recently

Credit markets are temporarily thawing, allowing capital flows from the core (USD, YEN, Euro) further down the way (Pound, AUD, Canadian Dollar)

There is definitely more speculation on FX today, after stock and housing markets collapsed - it means price may easily overshoot to the upside (overblown correction)

British citizens have moved their assets into the Euro

British economy is stronger than Spanish, Irish or French economies; those focusing on UK problems overlook problems elswhere

Rumours have been heard that the United Kingdom can go bankrupt

So I would be cautious about shorting the Pound again. I would wait.

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