Sunday, September 23, 2007

British Pound dropped after credit turmoil spreads to UK.

Today I was looking for investment to diversify my portfolio. Last week majority of world currencies were bullish against USD. GBP improved significantly less than others and lost a lot against EUR after credit turmoil spreads to UK. Have a look to chart comparing 3M x-rates GBP/EUR and USD/EUR. Currency pair EUR/GBP is now 0.6977 with low volatility but crossing below support 0.6995-0.6980. Therefore there could be bullish pressure on GBP.

I found few put turbo investment certificates underlaying EUR/GBP with reasonable spread (up to 1%). DE000SDL74T3 (spread 0.79%, leverage 13.1), DE000TB8P9V4 (0.59%, 9.9).
And too turbo certificates with very strong leverage. DE000SDL1B21 (1.86%, 31.1), DE000SDL15Y6 (1.86%, 31.0),
All are listed on EUWAX.

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