danierusan111
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Buy Pound Against Euro as U.K. Rates to Drop - 2008/10/17 19:38
Ok guys, I'm not telling you what or when to invest, so don't blame me if things do not work out for you as you expected. This is a statement from RBC Capital Markets analysts  :
"Investors should buy the British pound against the euro as the Bank of England will cut interest rates faster than the European Central Bank to battle slowing growth."
Prime Minister Gordon Brown's government said Oct. 8 it will buy as much as 50 billion pounds ($86.6 billion) in equity stakes in banks and 250 billion pounds in interbank loan guarantees to shore up its banking system.
Investors should buy the pound versus the euro with a target of 76.10 pence per euro. They should exit the trade if the currency falls to 78.90 pence. The pound traded at 77.83 pence per euro at 7:02 a.m. in Tokyo from 77.77 yesterday.
The Bank of England and the European Central Bank reduced their benchmark rates by 0.5 percentage point on Oct. 8 in a coordinated cut with central banks including the Federal Reserve, cutting borrowing costs to 4.5 percent and 3.75 percent, respectively.
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