With the possibility of 4 interest rate cuts next year it would seem the GBP is set to weaken against the major currencies throughout 2008. I am looking to make a long term trade in which i will go short on the GBP but I am undecided on which currency I should pair it with. Anyone have any views which GBP pairing will make the most pips in a year?
Your views would be appreciated - Thanks!
Since you’re basing your theory of GBP weakness on interest rate cuts, then why not match it up against one or more currencies which are likely to hold or raise rates, or at least not cut them as much?
What makes you think the US dollar or Euro won’t crash harder than the Pound?
Currency trading is all about matching a strong currency with a weak one so its up to you to decide which one is a “stronger” currency