Sterling Digest, January 5 2013: Trust the crosses

• Posted by faithmight
• on January 5th, 2013

To kick off the new year, the global fundamentals still stink. Currency wars still rage across the globe. American politics continue to debase the world’s reserve currency. And after entering recession in 2012, the British economy is poised for depression in 2013. As terrible as the fundamental landscape seems, I agree with @kathylienfx (read her articles below). The trades that make the most sense in 2013 are the currency cross pairs. While the majors are mired in USD murkiness (fundamentals vs. risk appetite), the crosses more clearly reflect the fundamentals. And as such, these currency pairs seem to have the best trading opportunities in the current forex market environment.

• TOP FOREX TRADES IDEAS FOR 2013 (BK Asset Management)
• Switzerland and Britain are now at currency war (The Telegraph)
• 4 Major Risks for Dollar in January (BK Assest Management)
• Has The Normalization Of The Dollar Trade Already Begun? – UBS (eFX News)
• What UK Small Businesses Can Learn From a Third World Finance System (Huffington Post UK)
• UK bond yields briefly rise above France: don’t panic, say analysts (The Guardian)
• Triple-dip recession, here we come (The Guardian)

 

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