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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (27686)	12/22/2008 5:30:32 PM
From: sea_urchin	Respond to of 82153

Phil > The British Pound has been taking a pounding. Yes, Sterling looks dreadful. It's now weaker against the Euro than at any time since the Euro was created. Maybe Sterling was weaker against Yen in the 1970s and before that, but not for the past 20 years. Imports into the UK are now going to be prohibitively expensive and since the UK has no exports to speak of the outlook must be for further devaluations. Perhaps even a default, like Argentina? Maybe Iceland? Unlike the USD, Sterling is not a reserve currency and so it cannot maintain an artificially high status. > makes me wonder how long the two strong currencies, the YEN and the EURO can resist measures to devalue their own currencies in the face of US and world economic weakness. Europe and Japan's exports must now be nonexistent but at least the strong currencies enable cheap imports, unlike UK which has the cheap currency but no exports. But how can the Euro and Yen devalue against the USD when the US is beset with one economic disaster after another? I believed the dollar was set for a bull run of at least a year but it fizzled out after a few weeks. > These FOREX moves lately are huge which indicate massive movements of currencies in an uncertain environment. The Yen has been consistently strong. I mentioned in an earlier post about the very positive technical situation on the chart. The Euro simply turned around and went up when the USD came down. Sterling has been consistently weak. As an aside, one doesn't hear any more talk about terrorist attacks in the UK these days because it's clear the government has more serious things to think about than playing US/Israeli war games. Also shows what a lot of nonsense the terrorist attacks were because if there were real terrorists around the place now, when the UK is in dire straits economically, would surely be the right time for them to do their stuff?