Loading ...For DaveintheUK – My $XBP Charts
Look bearish as hell. Aside from the possibility of Brexit, I’ve read there is a correlation between $XBP and global SM’s. When the latter
are dumping, $XBP tends to dump with them. It isn’t something I’ve paid any more attention to that than.
Cheers JenkinsLane!
Nasty chart on the right! The target of 1.05 is about the same as the 1987 low, isn’t it? Or was that 1.10?
Don’t know, only look at $XBP and it doesn’t show that so I guess the index must have changed.
Aside from that though, developing (yes, developing), countries that suffer a currency
crisis (dump), have 4 key commonalities:
1) High debt to GDP ratio.
2) Large Balance of Payments deficit.
3) Large Fiscal deficit.
4) Relatively small Foreign Exchange reserves.
The UK ticks all those boxes. IMO, near £:$ parity is probable.