Weak Pound?

By | May 15, 2010

The pound used to trade at about NT$68-69 for quite a while. Currently it’s trading at about 46.5~47.

But this report is interesting and suggests further weakness: “Sterling’s slide against the dollar has further to go, says Matt Shaw at www.fixedoddssuccess.com.

A retest of $1.45 followed by a further thrust to $1.40 by the end of May is my preferred scenario. I would use any rally to $1.51-$1.516 to go short, but the currency may not get this far.

This of course would place the NT$ at around $44 to the GBP. I am not sure that the we’ll see such low prices, but if we do test NT$:US$ at about 28.5… then I’ll be looking to purchase a few pounds. By then interest rates will have jumped, too.