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What comes around...

Wed, Jun 24 2009, 15:18 GMT
by Ashraf Laidi

CMC Markets


GBP is knocked off its highs hours after the SNB intervened by selling francs, propelling it vs. GBP, EUR and USD. Bank of England's King and Barker say pound "appreciation has been unhelpful" and that previous sterling weakness would help UK recover faster than other nations. Such talk does not go unnoticed by FX traders as the emerging rhetoric continues to aim at keeping fx strength in check.

In such an environment, gold prices do tend to appreciate (as central banks are deemed to engage in currency-debasing tendencies). WSJ had a piece about Fed not caring much about current dollar weakness, which is a fair remark to make considering the Fed's current priority is to slow down the pace of rising yields.


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