Monday, March 22, 2010

Britain's Empire Falling Again.....

Six Different Reasons to Sell-Off the Pound….
Now, on top of this, on March 15th, Kate Barker of the Bank of England recently confirmed all this bad news for the pound. Ms. Barker said in an interview that she felt that there could be a negative quarter of GDP coming in later in the year for the U.K. economy. Ouch!
When the market heard that, traders sold off the pound once again. But that wasn't enough...on the very same day, Moody's stated that the U.K. was close to losing its top credit rating.
Wow, just go ahead pour salt in that open wound, why don’t you?
It’s as if all the odds are stacking up against the British pound at once. You have…
1. A downtrend on the GBP/USD chart

2. Traders all over the world selling off the pound. (So the sentiment is sell now!)

3. The lasting effects from the Bank of England’s QE program.

4. Stocks around the world threatening to fall.

5. A member of the Bank of England calling for a negative GDP in the U.K.

6. Moody's rating service saying that they may downgrade the U.K.

That’s a deadly combination for the British pound, and it’s all happening at once.

No comments: