This post from Edward Hugh is to wonkish for most mere mortals to read. But everyone should pay attention to this….
So basically, “Big Ben’s” US bailout is fuelling specualtion on Hungarian debt!
And don’t miss this point from the Bloomberg article:
Deutsche Bank recommends investors sell the euro against the forint on bets the rate difference will help the Hungarian currency gain 10 percent to 260 per euro in two to three months from 286.55 today. Investors should also sell the dollar against the lira and buy the ruble against the dollar-euro basket, the bank said.
And it isn’t only Deutsche Bank, Goldman Sachs recommended on April 3 that investors use euros, dollars and yen to buy Mexican pesos, real, rupiah, rand and Russia rubles.
This entry was posted on Wednesday, May 20th, 2009 at 6:31 pm and is filed under Front Page, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.