Who Shorted the British Pound?

Intresting article. There's suspicion alot of money was made by persons knowledgable to the July 7th attacks in london, to make money shortselling the pound. You know you could do that guys rite? Just like you can shortsell stocks, take a look..

www.infowars.com...

Futures or futures put options are more likely, short selling a currency would require a huge amount of cash.

[edit on 7/22/2005 by djohnsto77]

Yes u can, Take a read, on forex, and you will understand.. Thank you. Then come back to report

Originally posted by crusader
Yes u can, Take a read, on forex, and you will understand.. Thank you. Then come back to report

Yes you are correct, you can. But Futures are much more likely.

sorry for my cruel statement deriding you , let's discuss this further..

You weren't cruel, I was simply wrong. Of course you can short sell currency, anyone could take a loan even on a credit card and change it to another currency hoping that currency would rise faster than the interest rate.

However, currency futures would be more efficient since you would't actually have to put up any upfront cash to pay interest on, only a margin account that you'd actually get paid interest on.

I don't see much to have been made in it though, even if there's a conpiratorial twist to this. The British Pound has been steadily declining along with the Euro against the U.S. Dollar over the last few months, the terrorist attacks don't seem to have had that much of an additional impact:



[edit on 7/22/2005 by djohnsto77]

Originally posted by djohnsto77
I don't see much to have been made in it though, even if there's a conpiratorial twist to this. The British Pound has been steadily declining along with the Euro against the U.S. Dollar over the last few months, the terrorist attacks don't seem to have had that much of an additional impact:
[edit on 7/22/2005 by djohnsto77]

EXACTLY, the pound was dropping prior to 7/7 due several factors, including speculation regarding bank rates being lowered, etc.

I hope you didn't forget that the Bank of England was meeting on 7/7, same day as the attacks... This movement of the pound is not surprising at all, people were already speculating the outcome of the bank meeting before it actually happened.

But according to this article, millions were made, shortselling the pound. it reminds me of the time when george soros made 1 billion overnight shortselling the pound. Infamously breaking the bank of england. This short selling is similar to the sept 11 dollar and share short selling

my husband is into FOREXand after reading your link, he couldn't stop laughing. He said it is full of mistruths, the British Pound is the most volatile market in the world, it fluctuates tremendously on a daily basis given economic data and lots of other factors. History shows that the pound can have 100-300 point range in any given day.

The pound fell about 6 percent (approximately 1.82 to 1.72) against the dollar for no apparent reason – until, of course, the terror attacks sent the British markets reeling still further.

Prior to the attacks the British pound was over inflated, it did indeed drop from 1.82 to 1.72 but rallied back up to around 1.79. So that statement above is incorrect...Also "no apparent reason" is untrue, most investors knew about the Bank of England's meeting, their plans etc, and even today's numbers released can confirm that Britain's economy is in the start of a recession.

In April the pound was $1.92 then dropped to the low $1.80's in June, 30 days before 7/7

on 7/6/05, the pound was at $1.7580, 7/7 it went to $1.74.. pretty much normal when given the circumstances.