Dollar Bull, Pound Bear
What a difference a month makes. Bulls have had their horns shaved a bit. And the bears have gotten a little more ferocious. Everyone is sighing with relief as the crisis has passed. Thank goodness for the ECB !!! Hip Hip Hooray! Hip Hip Hooray! But wait...
What if it isn't over? How could that be? Surely the most powerful men and women of the most advanced countries in the world must be in control? It couldn't be possible that events are spinning faster and faster out of control of the strongest wills and brightest minds that the world has to offer... Ummm, could it?
Take a look at this:
Or, for a slightly longer term view, this:
By the way, the Euro charts are very similar. And they both have given back ALMOST ALL of their gains today! The ECB monetary floozies pledge 1T Euros to "do whatever it takes" to hold the Euro together and the Euro and Pound barely budge! That is a vote of confidence!!! Ha! Now the British Pound MUST hold here. Notice that it is sitting on a level that has been touched three times. If this level of 1.48 against the USD does not hold, we could see it 20% lower in a matter of days. Right now, I would give this a 65% chance of happening. Those with exposure to the British Pound need to be careful. The odds are that the European currency crisis is not over.
What if it isn't over? How could that be? Surely the most powerful men and women of the most advanced countries in the world must be in control? It couldn't be possible that events are spinning faster and faster out of control of the strongest wills and brightest minds that the world has to offer... Ummm, could it?
Take a look at this:
Or, for a slightly longer term view, this:
By the way, the Euro charts are very similar. And they both have given back ALMOST ALL of their gains today! The ECB monetary floozies pledge 1T Euros to "do whatever it takes" to hold the Euro together and the Euro and Pound barely budge! That is a vote of confidence!!! Ha! Now the British Pound MUST hold here. Notice that it is sitting on a level that has been touched three times. If this level of 1.48 against the USD does not hold, we could see it 20% lower in a matter of days. Right now, I would give this a 65% chance of happening. Those with exposure to the British Pound need to be careful. The odds are that the European currency crisis is not over.
posted by Matt Butler at 8:57 PM
0 Comments:
Post a Comment
<< Home