Quote:
|
Originally Posted by Habib
Can someone tell me what is so great about cable?
|
Fundamentaly its more of a political orientation, than an interest rate / equity advantage.
With the war on Terror going on, World political turmoil has shifted from Britain & Europe during WW2, & the subsequent cold war, Now to the US.
Should there be, GOD Forebid, any "Major" political upheavels in Washington. The center of business & commerce for the "English speaking" World would automatically begin shifting from New York to London.
This is the normal course of socio-economic human behavoir. And a reversal to this happened back in WW2.
Back then London was the world's "English" center of commerce, and cable was the world's reserve currency.
Fx-Traders can safely assume that, so long as there are expected dangers & possible upheavals from the "War on Terror", And it remains center spotlighted on the world's political stage.
Pound strenght is more likely here to stay.
This has become a trend premis. Cable's Retracements against USD will be shallow.And is evident from its last retracement back in June/july 06, which was expected to fall to 1.75, & barely made 1.81, before bouncing to current levels, & threatning 2.0
That is not to say that yr analysis, regarding manipulators & central banks making utmost use of the situation is also very True.