John Floyd, a currency trader for 30 years and running his own hedge fund, Floyd Capital Management said a UK government policy to bulk up on UK debt and a central bank intent on raising rates but ending up buying bonds had created a perfect storm. Floyd declined to comment on how much money he had under management.
Floyd is long the dollar and short the pound. He believes Wednesday’s BoE intervention will shake confidence in the pound and “encourage people to look for further weakness.”“Intervention in the gilt market to lower rates will make it that much more challenging to fund the external deficit and a weaker currency will be the equilibrating mechanism.”
“The problem with today’s markets is that I can’t see the conclusion of all of this but it started with Brexit - when people decided that the world getting along was a thing of the past,” said Taylor.
Sverige Senaste nytt, Sverige Rubriker
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