brit pound
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Started by bear - July 22, 2018, 11:16 p.m.

possible senario... looks like the dollar will be rallying more real soon.

if the buck rises, and the pound goes down too much,  the BOE may need to raise short rates to defend the pound.

but their yield curve is already very flat,  and they could easily invert the curve.  

(50 yr rates are just above  1.50 %,  and 1 yr is at about .75 )  

a recession in england will be very bad for their universal health care system which is already struggling financially. 

but for now it looks to me like the pound will go lower.

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Re: brit pound
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By metmike - July 22, 2018, 11:23 p.m.
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Thanks bear!

Re: brit pound
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By 7475 - July 23, 2018, 7:02 a.m.
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I am much shorter term than your scenario and lack the savvy to say I have a handle on rate/currency relationships,but a DX rise does seem to be the soup du jour.

 And thats going to affect a lot of currencies-perhaps long term.

Im looking for opportunity and currently short CD from last nite.

Im risking 30 pts from here.

Maybe too early but thats my MO.

John

bear-are you going to or hoping to short BP?