Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
The uk is effectively bankrupt just like the US, perhaps not quite such a basket case but we have the advantage of not being in the euro currency. The Euro zone is also efffectively bankrupt with germany being the only example of good housekeeping but can germany bail out all of euroland. I doubt it.
Its just a matter of time before we need our gun licenses for protection of ourselves and our families. Anarchy will be with us at some point in time which I cannot predict accurately.
Everything else is academic with the politicians and CB's delaying the inevitable for as long as they can.
I don't know how accurate you expect these correlations to play. Suffice to say the EU strength is all about DX weakness for which Mr Bernanke has been 100% in control. Talk about wanting to devalue the usd in the face of purporting to support a strong dollar, hahaha. All chickens will come home to roost in the fullness of time. What can't happen will not happen.
STERLING HIGHEST PERFORMER among all top 10 traded currencies, building on this weeks robust services PMI and the expected BoE decision to not announce any QE. Prospects for further BoE asset purchases have receded thanks to recent data strength, but stay alert ahead of next weeks BoE quarterly inflation report, which has habitually weighed on the currency via weaker projections and dovish post-report pronouncements from BoE governor King. GBPUSD surges over 2 cents to $1.6297, coinciding with the trend line resistance from Aug 2009. A weekly close above $1.6310-20 would suggest prolonged gains towards $1.6460.
Ashraf
Since I work with covariances my analysis gives EUR has weakened .
March 09 high in DX = March 09 slighly higher low in EU
Dec 09 low in DX = Dec 09 high in EU
June 10 slightly lower high in DX = June 10 lower low in EU
Current higher low in DX = Current lower high in EU although DX has well violated its 78.6% ret whereas EU might have some catching up to do.
I have a symmetry target on the DX #F at 74.70 which is slightly shy of the Dec 09 low at 74.27. Watch that # Catnip :-) Its already below Ashraf's longer term trend support line