Relief from the £Pounding

The mid-September “Fat Finger OR…” overview discussed the British pound’s overnight “flash crash,” when it plunged by 6.1% within two chaotic minutes, raising speculation that the crash might have been sparked by human error, a so-called “fat finger event.” The Pound went on to fall to its lowest level against the $US since 1985 and its lowest versus the € since the latter’s inception back in 1999.

The overview also observed that, contrary to the hysteria surrounding the “blame it on the brexit referendum” of late June, the pound had actually been declining against the dollar for well over two years, providing evidence of this fact with a 3-year chart of the £/$US exchange rate taken from our new www.currencytimer.com service which highlights pink for sell the pound, neutral for uncertain/sideways and green for buy the pound.

A chart of the £/€ reminds that the pound had also been falling against the € from mid-2014, a near full year before the brexit vote, when the signal turned to neutral from buy, before going on to change to sell:

19-october-16

Over the intervening period since the September overview the pound has continued its slide against the two currencies, until today that is, when a new signal has been triggered for the £/€. Furthermore, it appears that a signal change for the £/$ also looks to be imminent, although not today.

If you would like a free sample of either exchange rate’s latest “picture,” then just visit www.currencytimer.com and use the help@currencytimer.com link under the contact page, stating your preferred currency pair, when it will be emailed to you

Whilst visiting, do have a look around and comments are always welcome.

 

 

 

 

 

 

 

 

 

 

 

 

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2 responses to this post.

  1. […] column has tried to offer some clarity on two of the issues via the 19th October “Relief from the £Pounding,” which concluded that a trend change for the £/$US looks to be imminent and the “Investment […]

    Reply

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