GBP NZD Long Term

[macduffy]

Great chart, Edwood!

The original question concerned the long term direction of the GBP/NZD. To give a view on that, one needs a view on the long term prospects for the British and NZ economies.

Too hard for me!

[Edwood]

Great chart, Edwood!

The original question concerned the long term direction of the GBP/NZD. To give a view on that, one needs a view on the long term prospects for the British and NZ economies.

Too hard for me!

hey MacDuffy - cheers
yeah I couldn't see an 'active trades' thread for GBP-NZD? Hoep you don't mind if I post shorter term stuff here...

To answer the original question >> you'd have to think there will some reversion to mean in future. GBP has been oversold in my mind, kiwi (and AUD for that matter) have benefited and at some point GBP will come back to life. Exactly when that is - who knows?

I am in the double-dip camp at a macro level and expect we'll see another major sell off before too long (it may have already begun) and kiwi will get dumped in the process. But if the fundamentals in the UK don't improve then there's no reason for NZD to stay down for long.

A change of govt in the UK would be a great start!