DOOM: Sterling

[clearedforlanding]

“South Africa’s rand, the currency considered a proxy for emerging-market risk, has been an underdog for years when it comes to trading against the British pound. But fiscal turmoil in the UK is turning that convention on its head.

Options traders now favor buying the rand against the pound and stepped up long positions on the South African currency to the most in six years. The so-called 25-Delta risk reversal on the pound-rand pair over the next month dropped to -1.86 percentage points, underscoring the shift in momentum.”

https://www.bloomberg.com/news/artic...?sref=o1Dqf087

So how does this work now; Are we all buying puts on the rand?

I really wish we still had Scooter to a TA on the tulipcoin that is the pound.

I have a great trading strategy. Leveraged buys on Asian trading hours (I am watching this tulip storm from afar), leveraged shorts whenever Truss opens her mouth during London trading hours.

[clearedforlanding]

The real reason the pound is crashing:

[AtW]

Pound falls sharply as Bailey insists he will not extend emergency support

https://www.telegraph.co.uk/business...nterest-rates/

<1.10 now

[jamesbrown]

[SueEllen]

Truss has spoken has the pound fallen yet?

[AtW]

“The pound is guaranteed to hit parity with the dollar by the end of November, analysts have warned, after Andrew Bailey’s mixed messaging sparked fresh turmoil on markets.

Painting a grim outlook for the UK, Jordan Rochester and Yusuke Miyairi at Nomura said sterling would extend its decline and slump to $0.975 by the end of the year.

They wrote: “In our opinion, the main reason why GBP should continue to fall is declining global growth expectations, risk sentiment on the back foot and the UK's significant current account deficit over winter with the risks of energy blackouts.”

The analysts acknowledged that factors including weaker-than-expected US inflation data, a reversal of the Government’s tax-cutting Budget or the extension of the Bank of England’s bond market support could reduce the risks to the pound.

But they said these were only short-term considerations that were unlikely to change the trend.”

https://www.telegraph.co.uk/business...ftse-100-bond/

[SueEllen]

Apparently the pound has fallen in the last 30 minutes.

[SueEllen]

Pound has fallen in last 7 minutes since the press conference.

She needs to keep her mouth shut. Every time she speaks she causes the pound to fall.

[vetran]

Truss has spoken has the pound fallen yet?

Well Kwasi's head has!

[SueEllen]

Pound is slightly up.

It will go up even more when Truss resigns.