i am a trader and i see u mainly trade gpdusd, what is the long term prediction for the year... will it got to 1.62 or down toward 1.5 mark..
Anonymous
O no you put me on the spot lol.
Given the Federal Reserve’s new mandate against the dollar (my words, not theirs lol) and the market’s reaction thus far, I have to think that the market is headed higher to the 1.62 highs after this pullback plays out. However, UK fundamentals are weak but has yet to capture the marekt’s just attention with the issues from the Eurozone, Japan, China and the United States overshadowing at the moment. Interestingly, the Bank of England and BoE Governor Mervyn King have been unsuccessful in weakening sterling with increasing quantitative easing. At this point, I think only if/when the credit ratings agenccies focus on the UK’s huge deficit, highly leveraged households, weak employment and barely growing economy, cable will come crashing down through 1.5000.
For now, however, I am more bullish than bearish with current price action above 1.5500 and the Fed-induced USD weakness. Only a hold below 1.5250 changes that for me.
