The British Pound (GBP) and the Euro (EUR)

Once again we wander off IKN's normal beaten track to check out the other side of the pond. It just seems to me the real baselines for metals prices are being shifted around in Europe right now so it's silly not to watch.

Interesting how the British Pound (GBP) has managed to rally pretty well recently against the euro (EUR). You would have thought the GBP attached to the hip to its bigger neighbour currency....but then again, perhaps it makes perfect sense with the Brits not bodily attached to the PIIGS.

Fund managers know what it's like to use Emerging Market leverage. It's fun in the good times, but has a nasty bite when things go bearish. Now we have the same thing here, just on a much bigger scale. Germany/France etc are fully industrialized nations and have been benefitting from the sharp growth in the southern European EMs for the first decade of the Euro's existence. But now the EMs are weak and those 1st worlders are getting pulled down with them. Except for The UK, shown by the GBP that's moving away from the mess. Just thinking out loud this Thursday morning and noting that a complex subject can have some fairly straightforward results.

the euro and the dollar, charting the recent action

Not usual IKN fare, but it gets a space today by way of a request.

This visual shows the bounce when the Big Fat Greek Bailout was announced, the subsequent selloff vs the greenback and then the recent climb. The rebound is modest so far, but according to this 90 min candle chart it does seem to have legs.

So this morning I see this headline "Gold hits new high in Euros" or something similar and say to myself....
...and the only thing to do was to check out the chart. And here it is.

Sure looks like it's ready to go. DYODD, dude.