FXB

The British pound

Chart Review: Australian Dollar Hitting Critical Junctures

I moderated my bullishness on the Australian dollar in early December because Australia’s terms of trade have likely peaked for now and the Reserve Bank of Australia had lowered rates twice. Last week, I recharged my bullishness on the Australian dollar after the Federal Reserve extended its dovish monetary policy. The Australian dollar experienced a … Read more

Still Bearish on the British Pound

This is an excerpt from an article I originally published on Seeking Alpha on November 15, 2011. Click here to read the entire piece.) Ever since the Bank of England announced more quantitative easing in the form of £75B of more bond buying, the British pound has bottomed and rallied against the U.S. dollar and … Read more

No Relief Rally, but the Dollar Squeaks By the Pound and Franc

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The relief rally for the U.S. dollar that I expected after the S&P downgrade of U.S. government debt did not materialize last week. {snip}…The dollar gained 1.6% over the franc BUT not until after the … Read more

British Business Secretary Cable Supports More QE If Consumer Demand Remains Weak

On July 24, British Business Secretary Vince Cable was interviewed on the BBC’s Andrew Marr Show. During this interview, Cable made the case for further quantitative easing (QE) if consumer demand in the UK continues to weaken. While he was quick to point out that the Bank of England runs independently, he provided a ringing … Read more

The British Pound’s “Quiet” Sell-Off Continues Nearly Unabated

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Almost a month ago, Bank of England Governor Mervyn King spoke at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House, and I wrote afterward that the … Read more

Skeptical the British Pound Can Sustain A Breakout Versus the U.S. Dollar For Now

After scanning through the latest quarterly release of the “Statement of Monetary Policy” from the Reserve Bank of Australia, I was reminded that currency traders are trying to prepare for eventual rate hikes from the European Central Bank (ECB) and the Bank of England (BoE): “While financial markets continue to expect the US federal funds … Read more

The Dollar’s Relief Rally Gains Steam as the Stock Market Clings to Support

Nothing like some geo-political drama to throw in some extra uncertainty into carefully laid out trading plans. After North and South Korea exchanged pleasantries early Tuesday, the dollar’s relief rally continued in dramatic fashion with a 1.3% gain. I am now even more convinced that the dollar will, sooner than later, retest the resistance at … Read more

Dollar Clings to (Life)Support, Pound Maintains Upward Trend

Ahead of last week’s big events, I suggested that the market was setting up for a surprise reaction. So far, the biggest surprise has been the timing of the market’s big rally reaction after the election and the Federal Reserve’s announcement of quantitative easing and before the unemployment report. But that is not the surprise … Read more

British Pound Punches An Underwhelming Breakout

Last month, as the British pound hovered around the converging support of the 50-day moving average (DMA) and the 200DMA, I noted that the currency “awaited a catalyst” before starting a new trend versus the U.S. dollar. At the time, I suggested that catalyst depended more on dollar-related forces. Sure enough, the dollar index followed … Read more