Sterling Digest, February 18 2013: serious shifting

• Posted by faithmight
• on February 18th, 2013

One of the most interesting bits of news last week that went largely unnoticed was Ray Dalio’s positive take on sterling. Talk about a bold, bullish call in the face of new lows and poor fundamentals. While the week ended with sterling rallying on profit-taking, GBP pairs are still very bearish. $GBPUSD, in particular, is especially vulnerable as it finally shifts below the major 1.5500 level. The $EURGBP is the most bullish GBP pair but that comes at the whim of a weak euro. However, the market hasn’t quite made that weak euro shift yet. And the $GBPNZD has staged a breakout to the downside after 2 years of consolidation. With the BoE minutes and unemployment numbers the only UK releases this week and profit-taking already underway, watch for GBP pairs to shift back to their long-term bear trends or move higher still on more price correction.

• Sterling strikes seven-month lows amid calls for further weakness (The Telegraph)
• Bridgewater Bets on Stocks as Cash Moves Into Market (Bloomberg)
• Ditch gilts and get out of sterling: Britain is heading for trouble (Money Week)
• Futures Traders Cut Euro Longs In Weekly CFTC Data (Forex Live)
• THE TOXIC STERLING BACKDROP (FXP PRO)
• No one really understands what’s going on in our economy (The Telegraph)

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