Short Sterling: December 2007 contract |
|
Comment: The spread between Gilt yields and Bunds/US Treasuries is expected to narrow and the UK yield curve should invert some more. Short Sterling contracts are pricing in Libor at almost 6.25% by mid-March; from 3.50% in October 2003; expensive! Open interest has ballooned to a new record, suggesting massive hedging. This December 2007 contract is more oversold than it has ever been. We continue to watch for a (probably dramatic) ¡®spike low¡¯ to form any day now for a short squeeze back up Read More...
Filed under: Futures
Latest Posts
- What I See in FX Market
- T-Bonds and Gold Signal Impending Stock Market Break
- Weak Outlook for U.S. Economy Pressure Dollar
- Weakness Stays With Greenback; Yen Might Start Sliding as well
- US GDP and a Preview of Next Week’s US Releases
- Comprehensive FX and Futures Daily Commentary
- Weak Japanese Economic Data encourages Shedding of Risk
- Economic Indicators Review
- Forex - Chart USD/MXN Update: Consolidation starting to crumble
- 08/01/2010 - The Dollar is on the ropes, again
- Spain: Labour force, employment and unemployment - July 2010
- The Second Quarter Ended on a Soft Note
- Intuition and Trading
- Mixed data slows market enthusiasm
- A HEART-TO-HEART TALK