Pipped off, take it easy on the language here. i do not encourage slandering and accusations on public figures. you can voice your opinions on the market and your idea of the sterling cartel but it can be done without calling people scamsters.
bojan, i was initiallythinking a revaluation could happen this year but w/ their monetary policy tightening being stepped out, a revaluation might be too much for them. keep an eye on the US side of the story and whether obama starts off a currency war.
at my opinion the timing will depend how yield in US tresury will behave. With the liquidity in the pipeline absorb by china and japan one has to understand that chinese monetary policy and the fixing of its currency to the dollar is totally dependant of the tenure in US treasury. its a well kept secret on both side of the pacific. Scrutinize the US productivity level for the next weeks months that might be helpful to time the decision if decison there will be.
Jim O'Neill of Goldman is the biggest front-running, Pump 'N Dump scamster around. He is head of the Cable Cartel. Someone get Jack Bauer to take care of this guy. He is a menace to society (and all FX traders)!
Lately there is more and more talk about Chinese Yuan, and it's "unavoidable" appriciation on the market. I started thinking about it after I heard this;
Jan. 23 (Bloomberg) -- China will probably let its currency appreciate by at least 5 percent in a one-time move and raise interest rates to cool the economy and curb inflationary pressures, Goldman Sachs Group Inc. Chief Economist Jim ONeill said. --it will definitely happen, and it can happen any day !
It would be good to hear your thoughts on this, and what would be the best way to play it (ETF's)
Gogy, read the explanation about yield curves and how their steepness explains the market's view of interest rates. Chapter 6 of my book has over 10 pages of charts and practical examples on "Rationale of Inverted Yield Curve Implications", and "Effectiveness of Yield Curve Signals Implications".
How do you help yourself with bond rates spreads. If I understand bonds correctly with the yield/price they measure the risk of default and economic strength of the country. Regards
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2010.03.10: For those asking about the recorded version (online) of my 1-day course in London this Saturday, it will be the first time CMC will record such an event so no assurances on the level of the quality in capturing the details of the charts. Those
2010.03.10: RBNZ RATE DECISION, AUSSIE EMPLOYMENT figures and SWISS NATIONAL BANK decision will be the source of potentially KEY MOVES IN FX as traders find clues for further improvement in the high yielders or a pullback off their 2 month highs. Seel Link for
2010.03.10: MORE POOR UK DATA as UK Jan manufacturing output fell 0.9% (vs exp +0.3%) but rose 0.2% y/y, while Indus production -1.5% m/m vs exp -0.8%. GBPUSD enters its 3rd daily decline, eyeing $1.4850 as the 2 and 3 hour stochastics point lower. EURGBP
bojan, i was initiallythinking a revaluation could happen this year but w/ their monetary policy tightening being stepped out, a revaluation might be too much for them. keep an eye on the US side of the story and whether obama starts off a currency war.
Ashraf