Time to Cover FXB Short
After the minutes from the Bank of England's Monetary Policy Committee meeting for February were released earlier today, traders noticed a shift in the committee's voting stance and sent the British pound to a new eight-month low against the U.S. dollar.
That's great news if you're short the pound or if you shorted the CurrencyShares British Pound ETF (FXB) as I recommended on January 30. Since then, the British currency has collapsed due a combination of circumstances: the breaking of a major trendline, a likely triple-dip recession and an economy too heavily geared toward its financial sector. This combination of technical and fundamental analysis yielded a big win, with the pound losing nearly six handles in the three weeks since the article was published. That's a huge move in the currency market, where high leverage (compared to U.S. stocks) is used to offset low volatility....418 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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