Sadly, it’s time to see if the Lambert algo still works.
Some months ago, around the end of January if I am not mistaken, I wrote a column that some took as tongue in cheek but was from the heart. It involved the closing of my favourite watering hole in London and was written with the observation that this was the end of life as we know it and it was definitely time to sell Sterling.
Cable duly dropped something like 600 points over the ensuing three or four weeks and I only tweeted about buying it back when everyone started telling me it was going down (Cable being the most contrary market I know).
So the big question that I just know you have on your lips(!) is it going to happen again? Just a couple of weeks ago I received word from a friend that another institution of the FX market was closing. The Eat and Drink just off Bishopsgate in the City.
Those of you that have (ahem) “enjoyed” a night at the Eat and Drink will understand when I say that as stays of execution go – this has been a good one. Many is the time we have been assured by the waiters that it wasn’t a rat we saw trot across the floor, we had had too many drinks and would we like another? It was the sort of place you looked at in wonder in daylight and thought, “I was in there last night?” Or, “Are the health inspectors on strike in this area?”
And of course, we loved the place.
I suppose the demise of yet another legend of the market can be attributed to the lower profile of brokers in the market, but I would have thought, given the spending limits on entertainment nowadays, that it would have been the perfect place to take a client. Equally, it could demonstrate the lack of moral fibre or intestinal courage of today’s marketers – sadly you can no longer be the judge.
So, it is with a heavy heart that once again I predict a slump in Sterling and ask the question, “what is there left worth coming back for?
There is a lot being written about Mark Carney at the moment before he takes over as Bank of England Governor and no-one, and I mean no-one is talking about the real issue. How does he stop these institutions closing with the subsequent pressure on the pound?
For as things stand, I have real concerns about the health and well-being of Dirty Dicks, The Magpie and the Dil Chad. Cable is 1.5400.