uk has a direct correlation with US economy.. if what they are saying is true, then pound will gain its strength along with dollar.. I think this will be true in the coming weeks..
Auslanco - GBP/JPY and GBP/USD (newstrade)
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what ?!
If the dollar strengthen, the pound will strengthen by the above factor same if the dollar weakens..
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uk has a direct correlation with US economy.. if what they are saying is true, then pound will gain its strength along with dollar.. I think this will be true in the coming weeks..
reality is gj and gu are ranging
bulls and bears win.....
I am bull one day (as per target 151.50 that was missed by 30 pip , but we all manmaged to get that juicy long off my 149.80 level for 140 pip right !!! ) and bear the next ...that is the market we are in.
what i know of gj right now is not buyers on the scene , support 149.50. That breaks next support 148.70 area
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lol..you are 1 rude man.. ahahahaa. By the way, I'm bull at the moment.. and I'm counting pips from the bear..
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- #198,626
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agreed with your support view.. I found there's a change in the momentum and acceleration in daily for GJ & UJ..
for all we know gu may rip up another 100 pip in asia session ....that is the nature of the market we are in now
VSA on 15 min charts has shown the way
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Markets are not Random, they are designed!
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Awesome article TheGabriel:
The Bank of England and Federal Reserve are flooding their financial systems with cash to keep borrowing costs low on expectations their economies will recover slowly from recession. That will spur investors to use funds from the nations to buy securities in countries with higher interest rates, BNP Paribas said. The bank raised its forecast for the yen and expects it to climb to its highest since 1995 against the dollar by year-end.
‘Funding Currency’
Benchmark interest rates are 0.5 percent in the U.K. and as low as zero in the U.S., compared with 3 percent in Australia, 7 percent in South Africa and 8.75 percent in Brazil. The yield gap lures investors to borrow low-cost funds and invest in higher-yielding assets in so-called carry trades.
Sterling will weaken in the coming months as the government needs to rein in spending and its central bank is likely to retain an expansionary monetary policy, BNP Paribas said.
“Sterling will degenerate from an investment into a funding currency,” said the analysts.
Moody’s Investors Service warned the U.K. and U.S. will need to “severely adjust their fiscal policies,” in a Sept. 9 report. Both nations have “lost altitude” in their ratings even as they remain resilient, Moody’s said.
Standard & Poor’s in May lowered its outlook on the U.K. to “negative” from “stable” and said it faces a one-in-three chance of a ratings cut as debt approaches 100 percent of gross domestic product.
“Sterling is likely to be the weakest currency in town followed by the U.S. dollar,” analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday. “The U.S. dollar has been used as a funding and a reserve currency simultaneously, suggesting the U.S. dollar will depreciate less than sterling.”
The euro bought 89.317 pence as of 10:49 a.m. in Tokyo, from 89.244 pence yesterday in New York. The 16-nation currency rose above 98 pence for the first time on Dec. 30. It advanced a third day to $1.4716 and yesterday reached $1.4737, the strongest level since Sept. 25, 2008.
The yen was at 91.12 per dollar and yesterday hit 90.13, the strongest level since Feb. 12. The pound was at $1.6477 from $1.6493.
The U.S. dollar will slide to 85 yen by year-end and recover to 90 yen in the first quarter, BNP Paribas said, revising forecasts for 93 and 95 yen respectively.
The Bank of England and Federal Reserve are flooding their financial systems with cash to keep borrowing costs low on expectations their economies will recover slowly from recession. That will spur investors to use funds from the nations to buy securities in countries with higher interest rates, BNP Paribas said. The bank raised its forecast for the yen and expects it to climb to its highest since 1995 against the dollar by year-end.
‘Funding Currency’
Benchmark interest rates are 0.5 percent in the U.K. and as low as zero in the U.S., compared with 3 percent in Australia, 7 percent in South Africa and 8.75 percent in Brazil. The yield gap lures investors to borrow low-cost funds and invest in higher-yielding assets in so-called carry trades.
Sterling will weaken in the coming months as the government needs to rein in spending and its central bank is likely to retain an expansionary monetary policy, BNP Paribas said.
“Sterling will degenerate from an investment into a funding currency,” said the analysts.
Moody’s Investors Service warned the U.K. and U.S. will need to “severely adjust their fiscal policies,” in a Sept. 9 report. Both nations have “lost altitude” in their ratings even as they remain resilient, Moody’s said.
Standard & Poor’s in May lowered its outlook on the U.K. to “negative” from “stable” and said it faces a one-in-three chance of a ratings cut as debt approaches 100 percent of gross domestic product.
“Sterling is likely to be the weakest currency in town followed by the U.S. dollar,” analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a note to clients yesterday. “The U.S. dollar has been used as a funding and a reserve currency simultaneously, suggesting the U.S. dollar will depreciate less than sterling.”
The euro bought 89.317 pence as of 10:49 a.m. in Tokyo, from 89.244 pence yesterday in New York. The 16-nation currency rose above 98 pence for the first time on Dec. 30. It advanced a third day to $1.4716 and yesterday reached $1.4737, the strongest level since Sept. 25, 2008.
The yen was at 91.12 per dollar and yesterday hit 90.13, the strongest level since Feb. 12. The pound was at $1.6477 from $1.6493.
The U.S. dollar will slide to 85 yen by year-end and recover to 90 yen in the first quarter, BNP Paribas said, revising forecasts for 93 and 95 yen respectively.
Fundamentally pound is weak...so staying bearish has its reasons beside technical analisys.
http://www.bloomberg.com/apps/news?p...d=aN1QyFidJWxA
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- #198,630
- Sep 17, 2009 4:41pm Sep 17, 2009 4:41pm
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I posted this article in the past..
http://www.forbes.com/2008/10/28/yen...?feed=rss_news
I think also this article:Is the U.S. Dollar the New Carry Trade Currency? http://seekingalpha.com/article/1020...trade-currency
http://www.forbes.com/2008/10/28/yen...?feed=rss_news
I think also this article:Is the U.S. Dollar the New Carry Trade Currency? http://seekingalpha.com/article/1020...trade-currency
it's like this.. the pound will have 1.2 - 1.5 factor of the dollar.
If the dollar strengthen, the pound will strengthen by the above factor same if the dollar weakens..
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thats completely BS my friend or i dont follow ur logic
only interest rates are important
last year USD joined to JPY carry trades club
current bluechips bubble is sponsored by USD inflation
when stock goes red USD will face deflation
only one question is unknown for me : where the hell gonna be UJ when stock crash occur ?
- #198,633
- Sep 17, 2009 4:45pm Sep 17, 2009 4:45pm
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You know without news FX price action will be boring..
lol i starting reading news ....s&p 110 p/e 9 higher now) 2001 only 45 p/e crash coming blah balh ... since then we have move up 80 points
news just givers you bias and effects the trading
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"Millionaires don't use astrology, billionaires do"
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"Millionaires don't use astrology, billionaires do"
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"Millionaires don't use astrology, billionaires do"
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"Millionaires don't use astrology, billionaires do"