Cable Update (GBPUSD)
I closed my little scalp for 20 pips and left my buy order on at 9660 stop below 9630....... If we get a clean break down of 9650 I think we could continue down to below 9500....
We should keep this chart in mind too ..... I'm off to the beach....
Enjoy your weekend guys......
I am not disagreeing with your view on cable over the long-term. My point being that prices rarely, if ever, move in a straight line. And I also mention in my message the benefits of a stronger dollar to UK exporters.
However, with respect, I think your argument that a weak dollar is the cause of all the UK's problems is a gross simplification of the headwinds the economy is facing. The cause of the difficulties run deep and were sparked by the credit crunch, which was obviously sparked by the sub-prime fiasco (as everyone is well aware).
The UK's economy is a service driven economy, with a disproportionate weighting in the financial and property sectors, meaning the credit crunch hit these groups, and thus the wider economy, hard. This caused the drop in consumer and business confidence, along with rising inflation - which is largely caused by rampant commodity demand from the emerging markets over the past decade.
The above hit the UK's economy hard, as it came at a time when both consumer and public finances were extremely overstretched, making them far more susceptible to even a mild downturn.
Yes, the stronger currency doesn't assist UK exporters to offset the decline in earnings from builders, financials and retailers. And I also agree that the US is the world's most important consumer, but you have to look at a bigger macro picture.
This is to much to read for a Friday afternoon
