Trading on British pound

[FreedomAngel82]

I haven't seen this posted so I apologize if it has been and I just haven't seen it yet. I'm not sure about the source and all that but it's worth a look at anyways. Seems very familiar....

Link: http://www.total411.info/

Snip: <From WorldNetDaily July 16, 2005:
It appears some profited by short selling the British pound in the 10 days leading up to the attacks.

The pound fell about 6 percent (approximately 1.82 to 1.72) against the dollar for no apparent reason – until, of course, the terror attacks sent the British markets reeling still further.

"This was an almost unprecedented weakness and far too sharp to be a coincidence," one economist with more than 35 years of experience in the investment industry, told Joseph Farah's G2 Bulletin, the premium, online intelligence newsletter published by the founder of WND. "That is, after all, an annualized rate of loss of well over 100 percent."

The fall did not go unnoticed by investigators, who are wondering whether the terrorist masterminds behind the attacks decided to make some money on their action or whether other investors with inside information about possible attacks took advantage of that knowledge.

"Currencies of establish countries simply do not fall that fast based upon any kind of economic or financial analysis," said the economist. "Somebody – somewhere – knew something. Or maybe I should say 'somebodies.'" >

[Frederik]

1. Thanks, this is very significant

People with formidable financial resources were expecting the London bombings. We may well theorize that the wealthy backers of al-Qa'ida in Saudi Arabia and the United Arab Emirates were selling their sterling holdings in anticipation of the attacks. But add this to the mix:

The terrorist attacks in London took place on Thursday. The Fed dramatically increased the pool of liquidity available for stocks to a multi-year high 48 hours before that---an ideal amount of time for that liquidity to filter into the market---and kept it elevated for the next few days. And indeed, it worked. The stock market saw heavy buying right at the opening bell on Thursday and has shot straight up since then.

http://rigorousintuition.blogspot.com/2005/07/prophet-greenspan.html

[Art_from_Ark]

2. Interesting

"Currencies of establish(ed) countries simply do not fall that fast based upon any kind of economic or financial analysis," said the economist.

The Japanese yen gained 9% against the dollar in only 4 days in 1998 (June 15-19), but by the end of the next week (June 26), the yen had lost most of those gains.

http://www.jeico.com/cnc57jpn.html

[FreedomAngel82]

3. As the old saying goes

follow the money. Just like with 9/11.

[malaise]

9. Bingo n/t

[tritsofme]

4. Wasn't there a broad-based dollar rally that week?

The attack came in a week during which the payrolls came out, Greenspin talked up the economy ect ect.

IIRC the USDollar rallied against all major currencies, especialy the yen, euro, and pound.

Someone can check that if they are so inclined.

Either way, I wouldn't pay much attention to what Farah writes on World Net Daily. He runs a conservative tabloid website.

[Art_from_Ark]

5. In the week leading up to 7/7, the dollar gained a little less than 3%

against the yen, and it appears that there was less of a gain versus the euro.

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=3m&l=on&z=m&q=c&c=

[tritsofme]

6. And the USD hit multi-month against all those currencies IIRC

That week.

And also IIRC the GBP rallied the week after the attacks, wiping out any supposed ill gotten gains.

This seems like much ado about nothing.

[Art_from_Ark]

7. The interesting thing is that the pound lost twice as much against

the dollar in the 10 days previous to 7/7 than the yen and euro, which both lost about 3%.

Another thing to remember is that if the currency (pound) were being manipulated with advance knowledge of the 7/7 attacks, the perps would sell as many pounds as they could BEFORE the attack, then buy them back at a reduced rate (and thus at a profit to them) after the attacks, which could partly account for the immediate rebound. Then they sell again, at a nice little profit again, and get out.

http://finance.yahoo.com/q/bc?s=GBPUSD=X&t=3m

[muriel_volestrangler]

8. Almost unprecedented - except for the month before

when roughly the same fall also happened, maybe in 13 days instead of 10.



Is WorldNetDaily worth trusting on this, especially when it's trying to sell its 'premium intelligence newsletter' to its gullible followers? Of course not. This is a story by a man out to make a few bucks off foolish freepers.

[Cessna Invesco Palin]

10. The important line in that story...

old Joseph Farah's G2 Bulletin, the premium, online intelligence newsletter published by the founder of WND.