Does Spread Matter Anymore in FX? UK - US 2-yr Spread vs. GBP/USD

Jack Crooks Black Swan Capital

It used to be that spread mattered in the FX world. Maybe it will again someday. Note the big divergence between the direction of the UK-US 2-year interest rate spread and the currency—GBP/USD. Though still in negative territory relative to US rates, the UK relative yield has been on a tear higher. Hmmm….

Author

Jack Crooks

Black Swan Capital

Experience Jack has over 30 years of experience in the currency, equity, and futures arena. He has held key positions in corporate financial analysis, brokerage, investment research, money management, and trading.

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