The Pound is a screaming BUY

inspector_monkfish

its just hit a new 2009 high of 1.5470 against the Dollar

setmefree2

inspector_monkfish wrote: »

its just hit a new 2009 high of 1.5470 against the Dollar

And oil has just hit $60. Are they both just a move against the dollar?

Generali

Alan_M wrote: »

It's economies of scale that make it viable. Playing with hundreds won't viable, but 10's of thousands the commision or spread is the same and therefore a minor cost.

There are plenty of FX brokers who would deal for you for very reasonable amounts. or alternatively look at sites like IG index which allow you to trade via spread betting.

It's something I only ever use to offset large purchases in foreign currency as I'm genuinely clueless to how the money markets operate....

I did once have an attempt at a few trades, 8 in total. I got all 8 wrong! Now considering the currency goes up or down it's a 50/50 decision and I managed to get is wrong in all cases....even random slection isn't that bad!

There is a very simple rule when it comes to currency speculation - don't do it ever under any circumstances with your own money ever.

If you're still tempted then refer again to rule 1.

Using the FX markets to hedge against adverse movements is incredibly sensible as a business IMO.

inspector_monkfish

16:36 GBP Shines While EM Asia Rests

[15:35 GBP Shines While EM Asia Rests] New York, May 19.

Europe is in, EM Asia is out, and Swiss is out of the park. The stealth intervention by the SNB last week has done its job. Banks are recommending finding a new safe haven currency and custody accounts are dumping CHF in favor of an undervalued GBP. This is despite solid Nestle chocolate sales being and decent valuations in the Swiss banking group. Healthcare exposure may be the index"s undoing.

Thanks to rise in oil and bank stocks, GBP is hitting new highs against many
of the Asian currencies. GBP/SGD will likely close at new 2009 highs today, GBP/THB will do the same, and GBP/KRW will try to catch up. GBP/JPY has closed over 150 only once this year. It looks like it will try to retake the 150 handle and head up to 152.80.

purch

I did once have an attempt at a few trades, 8 in total. I got all 8 wrong!

I assume you must have thought about what to so in a sensible and rational way.

Always a Big mistake.

Alan_M_2

purch wrote: »

I assume you must have thought about what to so in a sensible and rational way.

Always a Big mistake.

See, there's my problem, trying to apply logic to something which is completely illogical......

Alan_M_2

Anyhow, on a purely selfish note, I'm delighted to see sterling increasing in strength vs the Dollar as it helps my purchasing for one, and I'm off on a nice Florida Disney type holiday in August with the family and the more Greenbacks I get my mitts on the more of the Ralph Lauren Factory outlet store (you know the one at the Preimum Outlets area just off I drive) will be stuffed into my suitcase;)

inspector_monkfish

14:59 20May09 GBP/USD: Buoyed by US Bank Buying & Tripped Stops

[13:59 GBP/USD: Buoyed by US Bank Buying & Tripped Stops] London, May 20.

US bank demand, and batches of tripped buy stops, have helped propel cable to a fresh five-month high of 1.5622 as the USD wilts across-the-board. The pound is benefiting from increased risk appetite, with the Dow up 88 points last.

GBP/USD bull targets include 1.5650, 1.5700, 1.5724 (Dec 17 high), 1.5750 and 1.6000. A fund bought an estimated GBP 500mn 2-week 1.5700 GBP call/USD put option (June 2 expiry) yesterday, and there is talk that some option-related supply may emerge ahead of the strike level if it is threatened.

1.5600, 1.5575 and 1.5553 (200-day moving average) are now support points. Buy stops were tripped on the break through all of those levels. 1.5525 was yesterday"s high.

Generali

inspector_monkfish wrote: »

14:59 20May09 GBP/USD: Buoyed by US Bank Buying & Tripped Stops

[13:59 GBP/USD: Buoyed by US Bank Buying & Tripped Stops] London, May 20.

US bank demand, and batches of tripped buy stops, have helped propel cable to a fresh five-month high of 1.5622 as the USD wilts across-the-board. The pound is benefiting from increased risk appetite, with the Dow up 88 points last.

GBP/USD bull targets include 1.5650, 1.5700, 1.5724 (Dec 17 high), 1.5750 and 1.6000. A fund bought an estimated GBP 500mn 2-week 1.5700 GBP call/USD put option (June 2 expiry) yesterday, and there is talk that some option-related supply may emerge ahead of the strike level if it is threatened.

1.5600, 1.5575 and 1.5553 (200-day moving average) are now support points. Buy stops were tripped on the break through all of those levels. 1.5525 was yesterday"s high.

While it's interesting to see the dailies on cable, in the grand scheme of things daily movements mean about as much as Lamont's fart in the bath before his rendition of Je ne Regrette Rien for 99% of bankers let alone the population at large.

The Goldmans currency pair trades are more interesting but my experience when I worked for them was they got it wrong a lot.

I don't mean to be dismissive and I realise the above could be read like that.

inspector_monkfish

Generali wrote: »

While it's interesting to see the dailies on cable, in the grand scheme of things daily movements mean about as much as Lamont's fart in the bath before his rendition of Je ne Regrette Rien for 99% of bankers let alone the population at large.

The Goldmans currency pair trades are more interesting but my experience when I worked for them was they got it wrong a lot.

I don't mean to be dismissive and I realise the above could be read like that.

the thing is, its had an awful lot of very good 'daily' rises in the last few weeks

looking pretty good at the moment, and probably still a bit more room to go higher and creep into the 1.60's

but it is mainly a USD weakness driven rally, as although GBP is higher aginst the EUR in recent days, its not by the same percentage as it is aginsd USD