Of all the world’s currencies dominating the conversation – the Chinese renminbi, the U.S. dollar and, of course, the euro – few have talked about the British pound. But that hasn’t stopped a few bullish predictions about the exchange traded fund (ETF) in 2011.
The pound has been benefiting from less risk appetite, thanks to the euro’s woes. That’s part of the reason that Barclays recently forecast that the pound could be one of the world’s strongest majors in the coming year, reports The ETF Professor on Benzinga. [Play the Currency War With ETFs.]
CurrencyShares British Pound Sterling (NYSEArca: FXB) is up 7% in the past six months, and has been showing strength in what has been really trying times in Europe.
According to Gold Alert, the pound will rise to 1.82 against the U.S. dollar and to 0.78 versus the euro by the end of next year. [UK ETF: New British Leader, New Leaf Turned?]
Will it happen? Only the trend lines truly know…
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.