JPMorgan Chase & Co said in a report that investors should sell the pound against the Swiss franc because the financial markets remain in deep recession mode.
The analyst of the company also suggest to long Japanese yen against the dollar and the euro (i.e short EURYEN, short USDYEN), and short the pound against the Swiss franc (short GBPCHF).
According to a Credit Suisse Group AG index of probability based on overnight index-swap rates, policy makers will lower the rate a further 75 basis points at the next meeting. This will further make the UK pound to fall further.
The Bank of England's two-year yield fell below 2 percent on November 20 for the first time in at least 16 years.
Monday, November 24, 2008
Short UK Pound Sterling, Said JPMorgan Chase & Co and Credit Suisse AG Index
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