I believe that banking institutions are more dangerous to our liberties than standing armies.
Thomas Jefferson (1743 – 1826)
The GBP is marching higher against the other major peers this January (bar the USD, for other -and to some, obvious- reasons, and the CHF after its ‘shocking event’), in what -in my Model’s own terms- is a serious price aberration that may be anticipating something of a larger scale just lurking in the shadows. It is, the other 2 majors aside, the best performing major by some distance and has even managed to curb losses against the ‘almighty’ USD. Something’s fishy.
GBP/NZD hits 2.08 from 1.9250 (ie, 1,550 pips up +8%); GBP/AUD hits 1.9425 off 1.84 lows (1,000+ pips up +5.5%); GBP/CAD hits 1.90 off 1.7750 (1,250 pips up +7%); and EUR/GBP hits 0.74 off 0.7850 (450 pips down +6%). Not bad for a couple of weeks of actual trading (it’s only January, you stupid!).
Let’s talk about it, shall we?
Macro FX Out of My Hat 