Triangles_and_the_British_Pound

Triangles_and_the_British_Pound - Triangles and the British...

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Triangles and the British Pound 10/07/02 12:01:31 PM PST by David Penn Penny-wise and pound-foolish? Not if these triangles have anything to say about it. Security: EURGBP, GBPJPY Position: N/A There has been much talk in "fundamental" circles about the way that the European Growth and Stability Pact has limited the ability of Eurozone governments to, among other things, use deficit spending to stimulate economic growth. Whether deficits should be part of a tax- cutting strategy or part of a government job-creation strategy, the fact is that neither strategy has much room for success under the Eurozone stability plan that ostensibly keeps the treasuries of its constituent members "honest." One of the places the limiting effect of the stability pact increasingly may be seen is in the exchange rate between the euro and the British pound, represented in the forex markets as the EUR/GBP cross. While the euro spent the first half of 2002 appreciating against the pound, that appreciation seems to have peaked in late June. Since that time the euro, which remains
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Triangles_and_the_British_Pound - Triangles and the British...

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