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This is Money
Sterling has soared to its highest level against the dollar since the early Thatcher era, smashing through resistance to reach $2.0131 as global investors turn ever more bearish on the crumbling US currency.
Sterling marches on to reach 26-year high
While the markets are now pricing in two more rate rises in Britain to 5.75pc, they are betting that the next move by the US Federal Reserve will be a rate cut. America's economy has slowed sharply, with a risk that the property bust will cause a hard landing later in the year.
A dark side to over-stretched, strong sterling
Speculation that borrowing costs will have to be lifted from their current 5.25 per cent to 5.75 or even 6 per cent was stoked by news that two of the nine-strong Bank of England Monetary Policy Committee voted for an immediate rate hike at this month's meeting. The revelation sent the pound, which on Tuesday burst through $2 for the first time in 15 years, soaring to $2.0133 - a level not seen since June 1981.
Sterling hits 26-year high on fresh rate fears
THE POUND could trade as high as $2.10 against the dollar this year, leading currency analysts believe, inflicting lasting pain on British companies with significant exposure to the US currency.
Currency analysts warn pound set to surge as high as $2.10
Momentum investment may be the slothful route to riches, but for many it works. The general propensity to follow the crowd explains much about the markets and their gyrations. Mankind's susceptibility to collective irrationality is never far from the surface, however, and is a constant threat to investors
Any market report should, then, be read with a pinch of salt. Many "experts" quoted spend their days desperately searching for the real reasons why prices are moving. Indeed, some regard access to market reporters as one of their best avenues to the truth. It is not quite clear who is leading whom.
What is most remarkable, however, is that the genuine movers and shakers still themselves scour market commentaries. The funds at their disposal may give them a major advantage, but they dare not allow their edge to be blunted by missing out on a titbit of information.
Circle of insecurity should be jangling investment nerves
The rival platform to European stock exchanges being set up by seven investment banks moved closer with the appointment of a clearing and settlement partner. Project Turquoise, led by Goldman Sachs and Deutsche Bank among others, has appointed EuroCCP to handle its clearing and settlement.
Banks' European platform finds partner for clearing