Pound Goosed - Soros

I was putting the bins out earlier and stopped for a chat with our local "refuse relocation operative" Frank, Frankie Soros is his name. He's a nice bloke Frank, always whistling he is, who frequently stops for a chat usually about next doors cat and what he'd like to do to it. Sometimes about those bloody scumbags at number 37 with their broken down Sierra and that big Alsatian.

Today however, Frank broached the altogether more complex and diverse issue of the pound. To his way of thinking a Greek deal incorporating coordinated bilateral loans from its euro zone partners, with IMF assistance waiting in the wings should it be required, should be sufficient to quell the recent euro weakness.

An interesting viewpoint Frankie, I ventured, but er watch that bag mate it's dripping, I helpfully observed.

Undeterred, Frankie continued to press home his point. Although the inclusion of the IMF might be seen by some tarnishing the credibility of eurozone unity, their involvement should provide some stability in the market and help stimulate fiscal reconstruction, he opined.

Indeed, given that the pound had only managed to claw it's way back up to 1.12 against the beleaguered single currency, merely back to a level at where we started 2010, Frankie ventured that a run on a vulnerable looking sterling was his next major concern.

What awaits the pound now in the run-up to an election against a backdrop of strikes and political gesticulation and back-stabbing, especially against a resurgent US dollar, he asked.

He went on to assert that this mornings break below the 1.4850 Fibonacci support level suggests an attempt to test the 1.4400 22nd April 2009 lows against the greenback. At least he said that was the way he has restructured his portfolio once the Far East opened in the early hours, before heading off to the local council depot for the 6am shift, and he strongly suggested that I should do the same.

Some interesting and valid viewpoints there from Frankie. Next week Frankie Soros - "the whistling binman" - will talk us through his key analysis of the USDA planting intentions and quarterly stocks data.