PARITY WATCH: EUR/USD to equal GBP/USD...buy eur/usd?sell gbp/usd or buy eur/gbp?

Quote from increasenow:

EUR/GBP is finishing out this week on Friday at a HUGE OVERBOUGHT level...Daily RSI is at almost 80.00 and Daily Stoch is in mid 90.00's...look for good Eur/Gbp sell/short set-ups over the weekend and into sunday night/monday morning...this pair is so "high" it has got to "mini correct" for a further journey to parity...my thoughts...what do you think?
More...

pound is becoming cheap against eur imo but i would expect it to overshoot even more going forward - after all pound was overvalued for ages and it was not a big deal.
on macroeconomic front it looks terrible but at the end of the day it seems that big portion of bad news is priced in. not all news though, e.g. UK needs restructuring of a serious part of economy, even more so than US! this will have its costs which will feed into ccy strength.

to summarize: parity is gravity imo. maybe something similar may happen as what happened with USDCAD in the past year....

p.s. i closed 1/3 of my long term EURGBP hedge at around 0.94 level - to take some profit off the table. you never know with EUR after all...

p.p.s. never trade CHFXXX, i.e. no opinion.
 
Quote from dhpar:

pound is becoming cheap against eur imo but i would expect it to overshoot even more going forward - after all pound was overvalued for ages and it was not a big deal.
on macroeconomic front it looks terrible but at the end of the day it seems that big portion of bad news is priced in. not all news though, e.g. UK needs restructuring of a serious part of economy, even more so than US! this will have its costs which will feed into ccy strength.

to summarize: parity is gravity imo. maybe something similar may happen as what happened with USDCAD in the past year....

p.s. i closed 1/3 of my long term EURGBP hedge at around 0.94 level - to take some profit off the table. you never know with EUR after all...

p.p.s. never trade CHFXXX, i.e. no opinion.
More...
thanks...so you are on the thought of buying into EUR/GBP and selling GBP/USD...hey, what cross pairs do you focus on to trade as far as forex?
 
Quote from increasenow:

thanks...so you are on the thought of buying into EUR/GBP and selling GBP/USD...hey, what cross pairs do you focus on to trade as far as forex?
More...

i did not say anything about usdgbp - at least nothing explicitly. i see 1.45-1.55 as a possible range and the range that may not be easy to trade for me...

i focus a little bit on usdcad, usdjpy eurjpy, eurgbp and some EM exotics. but i do not consider myself as a forex trader. i am much more into fixed income and commodities.
 
I still have the long eur/gbp; short eur/usd; short gbp/usd trade on for over 2 months now. (I trade a basket of 12 fx pairs continuously)

I see the eur/gbp headed to well over parity, and no reason it shouldn't since banking is a greater percentage of British economy.

However, I see the dollar rising against all currencies as there will be no "hyperinflation" on the other side of the treasury printing press. Quantitative easing by the Fed suggests theat they will be purchasing the additional treasuries and expanding their balance sheet. Hardly inflationary until the banks actually start lending to consumers again and having a need to borrow from the Fed.

Inflation ruins fiat currencies. Deflation (to which the US is most at risk to due to the number and scope of free trade agreements) will bolster the $ well beyond what people have factored in.
 
Quote from OVVO:

I trade a basket of 12 fx pairs continuously
More...
hey OVVO, this is amazing...you trade 12 FX pairs at once!!!...wow...can you explain a little more how you do this?...especially being able to really focus and profit $$$..etc. It seems like 12 cross rates would be like 10 too many to focus on :p

with these 12...are they longer type trades?...1 week 1 month...or do some go for just a day or even intraday?...anyhow..keep up the great trading!!! INow
 
INow
I sent you a pm with the description and links, it's not relevant to this thread so I won't post it here. Thanks.
 
GBP now is like Dow Jones in October/November. Short every rally on everything. It is so easy it is not even funny. GBP/JPY, GBP/USD, GBP/AUD falling. Pick your cross and run with it. I am going to short every rally.
 
You must log in or register to reply here.
Back
Top