Greece, UK Debt Crisis Through Eyes of Currencies (EUR/USD, GBP/USD)

Watch the sovereign debt crisis in Europe through the eyes of currencies (March 1, 2010).  In this case the Euro (EUR) and Pound (GBP).  EUR/USD (Euro in Dollars) is still trading in a downtrend channel and 1.3457 is ultimate support which, if broken, opens the door to lower levels (1.30 or perhaps parity). Read the post I did on Sunday for more info on Euro/Gold, Euro/USD, the Euro hedge fund meeting (Soros, SAC etc.) and an interview with German banks via Deutsche Welle.

EUR/USD (Euro/US Dollar) -

Now a look at the British Pound.  On February 8 I did a blog post on GBP/USD when it was at 1.55 and said make sure it stays above October 2009 support (1.57) or it will test the 1.40s.  It hit a low of 1.478 this morning, -1.5% on the day and -4.6% in 3 weeks.  There was buying/covering off that level this morning.

GBP/USD (British Pound/US Dollar)

I'll provide a Euro themed linkfest later.  For now it appears that UK debt levels are now in play.  It's interesting that SPY and $USD are moving up together today.  

Sterling slides as deficit worries mount (FinancialTimes)
Gilts lose triple A lustre for investors (FinancialTimes)
Foreign Investors Sold Most U.K. Gilts Since April (Update1) (BusinessWeek)
Pound Plunges, Gilts Slide Amid Prospect of ‘Hung Parliament’ (BusinessWeek)


  1. Greece is gonna bail on EURO and there will be trouble.


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