Short Sterling – December 2011

Comment: UK two and three-year swap rates down abruptly over the last fortnight, US ones too, taking five-year Gilt yields to a new record low at 0.87%. Short Sterling futures have bounced in line with these, red months more so than front ones, dwindling open interest here and across the board suggesting short-covering. Nevertheless all aspects of this daily Ichimoku ‘cloud’ chart still point to a short position. Patience. Strategy: Sell at 98.940; stop above 99.000. First target 98.840, then

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