Wednesday, 20 February 2008

The British are also feeding the market. The Bank of England has ordered two official rate cuts, not back to back though. My forecast is for the complete decline of the UK housing market, the complete decline of the UK economy built atop it, and the complete drubbing of the British pound sterling currency. When the pound sterling 20-week moving average crosses below the 50-wk MA (circled in green), technical traders will take the sterling currency down toward 187. My eventual forecast target is in the 175 neighborhood. A disaster comes to the UK, just like the Untied States. Think AngloSphere. The tough call is whether money exiting England will pursue the euro or USDollar. As problems crop up further in Europe, my bet is the money will chase the USTreasurys, crude oil, and gold.



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