How low can we go?
I’ve given up asking that one in current market conditions. The GDP numbers last week weren’t quite as bad as people predicted. Still, they were bad. More importantly, I don’t see anything that necessarily shows that things are getting better…at least not yet.
What I found rather surprising was the strength of the British Pound. It gained substantially against the dollar, Yen and even the Euro. Once the encouraging statements came out of Barclays, the Pound never looked back. The only thing about this is that 4 out of the 5 news items about the Pound were positive i.e. not as bad as everyone thought they would be. Would you be willing to bet that the same will happen this week? Not too sure about that, mate.
We’re also getting the non-farm payrolls report this week, along with possible interest rate cuts by Australia and possibly the UK. It could be a messy week. Investors are going to be on their toes. It would be dangerous to try to work out the direction things are going. We shall watch how things start out this week, then we’ll decide