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EURGBP: Is Pound’s Outperformance Ending?
As the situation in Greece has deteriorated, many traders speculated that pound sterling would be the big beneficiary, serving as a regional safe haven for capital fleeing the Eurozone. Over the last several weeks, that theory has proven somewhat effective, but today’s big selloff (driven partly by weak manufacturing data out of the UK this morning) suggests that the pound’s outperformance may be coming to an end. Looking to the chart, EURGBP has dropped about 400 pips over the last month to hit a new 7.5-year low under .7000, but bears were not able to keep the pair below that level and rates have since ... (full story)