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Posts by "speculator"
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Posts by Anonymous "speculator":
There will be little reason to buy euro and pound against the dollar for 2010. The only way this could change is interest rates in UK/Euro to rise at a faster pace than in US. I doubt these central banks will raise inetrest rates at this time.
The pound is HIGHLY likely to breach 1.35 against the dollar this time round although i am not certain of it.
1- risk collapses as liquidity contracts and corportate insolvencies are fears
2 - markets collapse
3- central banks come in and rescue
4 - investors starts to regain confidence and pile in money
5 - risk becomes overbought over a short period
6 - the dirty work of the central bank starts to show
7 - risk collapses
8 - who will sort out the debts and fiat issues now?
9 - markets and risk decline over a longer period as investors find little reason to take much risk as there APPEARS to be no remedy for the disease in the system
10 - result is above average inflation and wage stagnation and higher taxes
11 - economies barely improve and unemployment remains high for several more years
the governer has officially confirmed to the market that he will not be raising rates anytime soon. couple this with poor recent export growth, soverign debt downgrade possiblitities, euroland issues there is no near term support for sterling whatsoever. the pound will fall alongside the euro in almost a lock-step manner.