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’25 interventions in a one week band, redux
Keeping up with currency wars can be a busy business.
It’s time, therefore, to give our already extensive intervention list, originally compiled on September 28, an update. And check out the emerging market entrants.
‘Talk of a GBP crisis seems like hysterical claptrap’
David Bloom, Global Head of FX Research for HSBC, is none-too-impressed with suggestions the Great British Currency is more krona than sterling.
Here’s his short but scathing note on the matter:
GBP crisis:
What being like the yen actually means for QE currencies
Dollar doomsayers were probably out in force on Wednesday.
Early in the session, the dollar index fell to its lowest level in almost a year, while the dollar hit its lowest level against the euro since December 2008.
The undervalued pound, redux
Add Merrill Lynch – and a host of fund managers – to the list of those calling a significant overshoot in the sterling sell0ff. The following from their fund manager survey, out today.European currencies continue to get cheaper in the view of our panellists.
UK: The attractive investment choice
Lest it be forgot, sterling suffered a rather tremendous collapse in fourth quarter of 2008. With the collapse of Lehman Brothers and thereafter, for a while, the precarious tottering of RBS and Barclays,
Buiter goes pamphleteering
Not much of a surprise here, but former Bank of England member and prolific blogger Willem Buiter is poised to make a big push today for the UK to join the eurozone.
Buiter is joining 31 academics and financial figures,
On the success of quantitative easing
So yesterday the UK press discovered quantitative easing. The Daily Mail:
LET’S PRINT MORE MONEY! LABOUR’S BIG IDEA TO FIX BRITAIN’S ECONOMIC CRISIS
…
Zimbabwe is an example of an economy where reckless printing of money has led to stratospheric levels of inflation,
A homely parade in the currency ‘ugly’ contest
After the “flight to safety” panic of last year which saw investors flocking to government bonds among a dwindling choice of “save haven” investments, the mood appears to be turning nearly 180 degrees against government debt – as seen in the FT’s latest survey of leading asset managers and strategists,
Great (British Pound) Expectations
What’s that up ahead? A glimmer of light on the horizon for the Great British Krona — currently suffering from record lows on a trade-weighted basis?
Bank of America seems to think so, at least relative to the USD.
So what could go wrong next?
Simple, according to Deutsche Bank’s credit strategist, Jim Reid:
So if 2009 goes horribly wrong it’s probably because there’s a run on a major currency or a Government bond market than because of wide scale corporate defaults.
Taking a pounding
Another crash of sorts – that of the British pound against the dollar.
The GBP dropped to about $1.6902 this morning — it’s lowest level against the dollar in almost five years.
This has as much to do with the curious happenings in the USD as it does with the UK’s own financial crisis — the dollar having rallied even as the U.S.’s troubles deepen.