Hot money deposits in Britain have ballooned fourfold in a decade to £4,000bn. "What we have is an enormous liability. People have been very happy to park their money in Britain because of the high interest-rate culture and the country's reputation for sound management, but if you start to unpick that, it can go very fast. These investors are fickle," he said.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/05/cnhsbc105.xml
If $4 Trillion Pounds leaves GBP where will the money flow? Look for commodity currencies, possibly CAD in addition to NZD and AUD, to increase against GBP.
With 4 trillion pounds leaving GBP, where will the money flow? Look for commodity crosses and interest bearing crosses, NZD AUD being top 2.
Buy NZD/GBP , AUD/GBP
The above is a daily chart of NZD/GBP – has been up already, but with $4 Trillion pound floating around looking for a new home upside pressure will persist.
- elite trading team
