Sterling Digest, April 19 2012: the euro is dying

• Posted by faithmight
• on April 19th, 2012

The streams are buzzing with $EURGBP talk as the pair finally breaks out to the downside for new yearly lows. This pair remained rangebound for 4 months as the ECB, IMF, and EU kept the market in great suspense on what it was going to do about Greece and the other PIIGS. Unlike other QE-wielding central banks like the BoE and the $FED, the ECB took its time in dealing with the financial crisis within its borders. As larger economies like Spain and France start to teeter, the long term euro implications of early inaction could be devastating and sterling stands to benefit.

• Case for a Lower $EURGBP Exchange Rate (The FX Cafe)
• Weekly Breakdown – FUGLY (Chart.ly)
• EURGBP 4HR (Chart.ly)
• The ECB balance sheet is larger than the Fed’s or the BoE’s (Fulcrum Asset Management) [pdf]
• Pound powers higher, Aussie droops (Tradingfloor.com)
• BoJ will print as much as it takes (The Big Picture)
• Market Still Expecting BOJ Easing (FX Street)
• Bank of Canada lifts some forecasts, warns on debt (Reuters)

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