“HCS Worldwide”- The British Pound is set to continue its fall from grace.
“HCS Worldwide” analysts apparently expect the foreign exchange market to continue its assault on the British pound in the coming days as foreign investors in gilts head for the exits.
In an analysts’ note to clients, “HCS Worldwide” reportedly advised clients that they should convert sterling-denominates assets into alternative currencies but continue to avoid the US dollar which they believe is due for a protracted sell-off as deleveraging slows on the back of US government bailouts and guarantees.
“HCS Worldwide” are reportedly suggesting currencies like the Swiss franc, the Japanese yen or the Canadian dollar as viable alternatives but also seem to be warning that precious metals, including gold and silver, will appreciate against all paper-based currencies as world governments continue to utilize monetary expansion and fiscal stimulus to kick start their economies in the face of the global slowdown.
“HCS Worldwide” are thought to expect sterling to slip to as low as $1.40 in the coming months, far from its highs of $2.11 as little as 8 months ago and have cited gold’s £500 per ounce price as proof of its value as a hedge in times of financial uncertainty.
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