Short Covering Menyelamatkan Sterling

Monexnews-Sterling continues to move away from its lowest position 33-months against the U.s. Dollar as some investors reduced the portion of a short position on the United Kingdom's currency while doing a profit taking. However, a number of traders assess if Sterling's appreciation triggered by short covering that tend not to last long, given the lingering worries about the economy and expectations that the United Kingdom Bank of England will do more to encourage asset purchase economy.

"On the side of investors, they look reluctant to sell at current levels. What's with the Sterling/Dollar that has mired deeply in, "said Michael Sneyd, forex analyst of BNP Paribas. He said, the currency pair it is possible to make profits ahead of the budget of the United Kingdom on 20 March. "Investors are in no mood to take a long position Sterling/Dollar given the BoE Policy Committee which tend to add monetary stimulus." (vid)

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Short Squeeze Memicu Rebound Sterling

Monexnews-Sterling managed to rebound from the lowest level against the Greenback 2½ years as investors started to consider if a sharp decline recently has been far too much. That view is supported by some analysts who argue that most investors will try to take advantage of the downturn to take advantage, especially considering the lack of data in the United Kingdom throughout the rest of this week.

However, the condition of the domestic economy remained fragile in condition susceptible toward Sterling budget announcement on March 20, United Kingdom.

"With so many short positions in Sterling, then it is natural if it happens then the short squeeze. Although it is still potentially propping up Sterling until the eve of the budget speech on March 20, later on, the increase would not be significant as possible, "said Saeed Amen, analyst with Nomura currency. Amen to predict if Sterling will lose 2%-3% against the U.s. Dollar in the next few weeks. (vid)

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