british pound question?

Discussion in 'Forex' started by steeldust, Jan 27, 2003.

  1. hi, i have a question concerning the pound. if the USD is getting sold becuase of concerns of war then how come the pound is not? the brits would be second to the US in the war but yet their cuurency keeps going up(against the USD) also their economy looks sick but thats beside the point. is it just basic follow the euro and thats thats?
    and no i am not involved in the GBP just interested. any ideas? thanx:cool:
  2. Babak


    I'm not sure but I imagine it might be because Blair is very pro Euro and there was talk not long ago of Britain joining the EU monetary wise.

    Anyone else with thoughts?
  3. just21


    I live in the England, probably the most liberal country in the world, and don't know. If you read the papers here you would think we were living in an anarchist state. We have given asylum to a taliban soldier, numerous algerian terrorists and 1200 British muslims have returned from terrorist training camps in Afghanistan. I just think the short covering rally in the dollar when the war starts might be one of the sharpest moves ever seen in the fx market.
  4. just21


    And we are the allies of the US who go to war to keep the price of petrol low but we have the most expensive petrol in the world because it is heavily taxed. Would you drive a Jeep Grand cherokee if petrol cost $6 a gallon? My mother does!
  5. My uninformed opinion :
    Partly because international investors are pulling out of the US stock market, and also the low interest rate.

    One thing I noticed today is that the S&P tanked, the Dow goes under 8000, but the TY is not budging up.... people are getting out of the market, but doesn't seem to put the $$ into US bonds... Gold however is going up, but made a doji...
    And of course, I may be very wrong and sound completely like an idiot ! (and I don't care sounding like an idiot, because the market taught me to be humble.... :p )

    Cheers!! :)
  6. cheeks


    That is a very good point. I've had my blinders on looking at stock charts backwards, sideways and upside down and I had not noticed that.

  7. nitro



    The thirty year yield was up +.32 today. The fact that the yield moved is not what is interesting, it is that is went up! In balance, the yield curve did flatten some...

  8. Actually I was talking about the price of TYH3. The yield goes up because the price goes down. :)

    ... as for flat curve... it sounds like my g-friend ! :mad: :D

    Cheers!! :p
  9. nitro



    I am also talking about TYH3, and I am also aware of the price/yield relationship. I just got turned upside down.

    Heh, the sexiest girlfriend I ever had was pretty flat - she compensated in other ways.