Wednesday, January 21, 2009

British Pound plunges

Commodities have plunged, and so has the value of the Pound. By my reckoning, the Pound is now somewhat undervalued relative to its purchasing power parity level, which I calculate to be about $1.45. It's been a lot weaker in the past (e.g., 1984), so if currency markets do their typical thing (e.g., overshoot) then we could see even more Pound weakness (and by inference more dollar strength).


The Therapist Is In said...

Do you have a link for daily cumulative advance decline charts / data? Thanks.

Scott Grannis said...

I'm not a technical guy, and I don't have a link to give you. I do see some cumulative NYSE advance/decline data on Bloomberg however. After starting 2008 at 60,000, it bottomed at 8,287 on Nov. 20th, then rose to 20,514 today. I assume that is bullish.

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