After the Brexit “V” shaped stock market sell-off and recovery, certain algorithmic trading models received sell signals in the British pound. Other models pointed to a potential knee-jerk reaction and a weak signal. Capital Economics, considering a fundamental take on the British pound, looks at what appeared to be a scare campaign and says they are not afraid. In an August 10 report, they recommend buying Sterling and point to it as a potential safe haven against the US dollar and more pointedly the euro. Primary performance driver in British pound might now be central banks As the British pound moved…
Capital Economics Says Buy Sterling, Brexit Scare Overdone
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.