British Pound To Take a Pounding
Posted on February 17, 2008
Filed Under GBP/USD |
Tomorrow’s post about the British Pound was going to point out that it looked to be forming a very neat double bottom with a strong possibility for a bounce back up to the 2.000 level. However, today’s news that the UK goverment has taken the Northern Rock bank into “public owernship”, ie nationalised may see the pound take a pounding (excuse the pun!) not seen since the days of Black Wednesday and George Soros!
Whilst it may hold up against the dollar it may take a beating against the euro and the yen and the London opening should prove to be a very lively session.
As I have said in previous posts and articles Northern Rock should have gone into administration last year before sucking in over $100bn of taxpayers’ money. Only the depositors’ deserved any special attention and protection and the mortgage book sold off: shareholders and bond holders should have been left to market forces.
More in the morning.
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