As talk, emanating from central bank`s officials, subsides world currencies step again on the trodden path to equilibrium: the once mighty USD is due for downside move against the majors.

The only exception to this rule in current conditions could be GBP which I deem do be the second worst major currency. Unlike its American counterpart though the cable proved to be more resilient for the last years. Not the last reason for that is BoE hawkish, at least at the face value, stand; in many talks BoE officials reiterated that they are willing to hike rates in the nearest future.

Really? Seriously, if they had not increased rates during “the good times” of blowing humongous bubble in financial assets and real estate how they would do so when prices nudge down? They simply cannot afford higher interest rate, since almost every single financial institute depends on short-term borrowing, let alone the government.

Rate hike is NOT COMING in the nearest future, GBP is significantly overvalued and sooner or later will go down the trodden path of devaluation against currencies of “the real economy” nations.
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