[B]My picks:[/B] Short EUR/GBP @ 0.90 limit
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week
Today, I will be waiting for an opportunity to sell-short EUR/GBP with a limit order at 0.90 and a stop in a daily close above 0.91 for 200 pips in profit potential. First, the most recent statistics continue to point towards a sharp contraction in economic activity in the euro zone and lower interest rates combined with some sort of quantitative easing could be needed to prevent the euro area from falling into a much deeper recession. Second, the ECB continues to underestimate the size of the financial crisis by keeping interest rates too high for too long. In fact, the Bank of England has been very proactive than the ECB cutting its benchmark interest rate to the lowest level in the bank’s more than 300 years of history.