The WSJ and the Financial Times are crediting the drop in the British pound to the upcoming election. Worth a read though I still think that its more than just politics because politics have been in the background for the past few months. If you haven’t read it yet, read my piece on 5 [...]

Posted in 2009 gbpusd forecast, British Pound, forex blog, gbpusd No Comments »

With mixed to slightly better than expected U.K. economic data, traders may be scratching their heads about why the British pound has collapsed more than 300 pips this morning. Here are a couple of reasons:
1. Britain’s Prudential announced plans to buy AIG’s Asia operations for $35.5 billion in cash and stock - since this [...]

Posted in 2009 gbpusd forecast, Bank of England, British Pound, forex blog 18 Comments »

My favorite long term forex trade is short GBP/AUD. From both a technical and fundamental basis, the currency should be headed lower.
Based upon the recent trend of economic data including the highest level of unemployment in 12 years and the sharpest decline in retail sales since Feb 2009, the Bank of England should [...]

Posted in Australian Dollar, British Pound, Favorite Forex Trades, aud/usd, forex blog 10 Comments »

Over the past few trading days, the British pound has been confined to a very tight trading range. The following chart illustrates the predicament that GBP/USD traders find themselves in right now and I believe that the breakout will be to downside with the GBP/USD testing 1.60 in the near term.
This morning, [...]

Posted in 2009 gbpusd forecast, British Pound, S&P, forex blog 11 Comments »

Dollar bashing has driven the U.S. dollar to an 11 month low against the Euro and 1 year low against the Australian dollar. If you have caught my interviews on CNBC and Bloomberg, you would know that I have been bearish dollars and bullish Aussies and Euro for the past 2 months. Now [...]

Posted in 2009 eurusd forecasts, 2009 us dollar forecast, Bank of England, British Pound, Gold, dollar record low, eur/usd, forex blog No Comments »