Cable on the prowl again.

[Habib]

Can someone tell me what is so great about cable? One day they are saying BoE is gonna hike rates only once in 2007, and the next day they change it to "They are gonna keep hiking". What a bunch of crap!!! Cable is setting itself for a hard fall, if you ask me. I always like to post when I detect market manipulation. Lets see how this one unfolds.

[4xis2ez]

This may have nothing to do with cable strength but rather US dollar weakness. There are 2 sides to every currency pair. Chicago PMI in recessionary numbers now.

[johanno]

Chicago PMI below 50 !!BELOW 50¡¡ what else do you want?
And read this

i don´t know if this article is BS but i just keep buying. Just follow the trend buying below the median close to support line and pips will be with you.

It´s incredible but a lot of people is loosing big money trying to sell "the retracement"

[Habib]

Originally Posted by 4xis2ez

This may have nothing to do with cable strength but rather US dollar weakness. There are 2 sides to every currency pair. Chicago PMI in recessionary numbers now.

I agree dollar is weak and getting weaker, but this poodle (GBP) is trying to run way ahead of its master (EUR) having almost snapped the leash. And if USD is so weak then why is JPY still in the gutter? Don't tell me it is carry trades. These are all facades to hide their manipulations and one day when you least expect it, they will push JPY to the clouds.

[Summerset]

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.

[Soul-Trader2004]

it's because as always - britannia rules the world and you minnions must all follow

[Habib]

Originally Posted by Summerset

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.

I respectfully beg to differ, politically the UK has been towing the US line as far as foreign policy goes. So anyone out there in the world who dislikes US policies also abhores UK's political thinking as well. Moreover, (the not so Great) Britain is no longer an Empire that it was in the colonial days (no offence to my British friends). So I very much doubt London will or can take over the role of New York, ever. Thinking long term, I think Asia is beginning to emerge as the new all-powerful center of the econo-commercial world, not that I like that idea. I like the big apple as it is.

[Summerset]

Originally Posted by Habib

Thinking long term, I think Asia is beginning to emerge as the new all-powerful center of the econo-commercial world, not that I like that idea. I like the big apple as it is.

Probably VERY TRUE

But regarding Forex & cable, the question is trading, and is not about vying for World dominance.

Look more closely at where the Capital of the "Anglo-saxon" influence will be, if political clout shifts from Washington. If for some obscure cause this should happen. There will simply be no where for "English speaking" cultures to capital at, except London. The current NY session would shift in volume to become the London session. And because of this, the current London session would then overtake the Tokyo one in volume.

This is the simple trading relationship based mainly on language & clutural prefrence that I am pointing at. And is the underlying strenght behind cable.

The British empire may have folded half a century back, but the London exchange has always remaind viable because of vested American intrest in it.
And in future, could reverbrate in waves of such viability, should there be an influx of American intrests, due to geo-political changes in the States, or even due to "English speaking companies" wishing to hedge in veiw of a threat of one.

Anglo-American intrests have always been pegged, since WW2. And the potential to "unload" part of- or in case of an adverse effect- All of the Greatest economy in the World, into its political affiliate is certinary enough to strongly uphold the affiliate's currency world wide.