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Bbc Finally Notices Curracy Drops


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The BBC appears to have noticed that the dollar is staging something of a come back against the Pound and the Euro.

http://newsvote.bbc.co.uk/1/hi/business/4648891.stm

Seems to that the ECB and BOE are both caught between a rock and a hard place and Mr Greenspan is welding the rock!

Excellent-I am sitting on a large pile of dollars currently, received and taxed at $1.87 :D . But how low will the pound go? I am thinking/being advised around $1.65. Either way, it looks like it ought to prevent UK interest rate cuts, unless of course you think the MPC can be manipulated by Gordon Brown :o .

S.

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When the BBC notices, it's usually just before a trend reversal.

Amateur FX traders will now short the pound. The BoE won't increase rates and the pound will suddenly stop going down (it might actually go up).

Result? The amateurs lose. The pros win. Nothing new under the sun.

Edited by cgnao
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Guest The dude
When the BBC notices, it's usually just before a trend reversal.

Amateur FX traders will now short the pound.  The BoE won't increase rates and the pound will suddenly stop going down (it might actually go up). 

Result? The amateurs lose.  The pros win.  Nothing new under the sun.

what does short the pound mean?.....sorry for my ignorance

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Guest wrongmove
what does short the pound mean?.....sorry for my ignorance

I'm no expert, but it means to gamble that the pound will drop in value.

Basically to short the pound you would borrow pounds and then sell them. When (or if) the pound drops in value, you buy them back, pay off your debt, and keep the magin.

Edited by wrongmove
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When the BBC notices, it's usually just before a trend reversal.

Amateur FX traders will now short the pound.  The BoE won't increase rates and the pound will suddenly stop going down (it might actually go up). 

Result? The amateurs lose.  The pros win.  Nothing new under the sun.

i don recal anyone complaining when the pound was getting stronger against the usd, even on a run from 1.3 to the pound so why should they care on the way down.

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i don recal anyone complaining when the pound was getting stronger against the usd, even on a run from 1.3 to the pound so why should they care on the way down.

Because on the way up imported goods are cheeper, so inflation falls. Means GB can get away with pump billions into the economy without inlfation taking off.

Now that the dollar is falling inflation will be pushed up. Remember the Chinesse Yuan is tied to the dollar, so Chinesse impoarts will also rise. I not that the pound is even falling against the Euro.

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on the weekly charts 1.7482 was an important low in May 2004.

we are also poised to fall through trend support dating back to March 2002.

Oh Goody! Interest rates to go up to support the Pound then! :D That will really finish of the housing market. Always felt one more rise would just about do it, especially now that everyone has convinced themselves that it is going down. Big shock factor :lol::lol::lol:

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Anyone have a link to a free chart of the GBP /USD so I can keep an eye on things, just for interest sake really.

Historical is fine maybe updated daily or something?

Cheers

Mr T

Here:

http://quotes.ino.com/chart/?s=FOREX_GBPUSD&v=dmax

You can see the huge run in 2003 which created the position where there is effectively no support cahrt-wise for a falling £ that Spoon is talking about.

Edited by OnlyMe
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