The pound fell to its lowest exchange against the euro since October 2011

The Japanese yen starts to get jealous.  It is no longer the only major currency that captures attention. In its slipstream, and so strong, the pound sterling begins to excel and this morning it has marked his change lower against the euro since October 2011 and against the dollar since January 2012.

Specifically, the euro appreciates by 0.8%, to 0.875 pounds, while the dollar is up 0.8%, to 0.654 pounds. With these declines, the British currency confirms the growing bearish omens. In fact, short positions on this coin-those performed considering a further fall in the pound-have soared in recent weeks. And behind them, including several major fund managers, there is an old acquaintance: George Soros, the famous Hungarian-born investor who won the Bank of England in 1992 and led to the departure of the British project that subsequently resulted in the creation of the euro.

With today’s fall, the pound treads familiar ground, since in 2013 is the second weakest currency among the largest in the world. Only the yen has lost more value in its major crosses. To date, the British currency accumulates depreciation of 7.9% against the euro and 6.3% against the U.S. dollar. This weakness corresponds to showing the British economy, which threatens to fall into recession in the third cycle crisis. But it also draws on two additional factors: first, the possibility that the Bank of England takes further stimulus measures by which would put more pounds in circulation, and second, the persistent rumors that Britain could see reduced its credit rating.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>