Busting the Pound/Euro Trade
Human beings must have action; and they will make it if they cannot find it. --Albert Einstein
I've written about the British pound a few times on Real Money Pro, comparing it against the yen (FXY), the U.S. dollar (UUP), and the euro (FXE) using with the same underlying theme: Whichever currency wins out will be the one with the least aggressive monetary policy. In the April 26 column "Trouble by the Pound," I noted that eurozone woes have pushed the pound to strong levels despite the U.K.'s double-dip recession. I also addressed that the pound/euro relationship was nearing resistance, specifically pointing out that "while the pound remains strong, any kind of announcement by the (Bank of England) on further (quantitative easing) could be the catalyst needed to break the currency, making a short on it a potential winner."...221 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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