Our macro team is removing the British Pound (via the etf FXB) from Investing Ideas.
We are removing the FXB because:
- The best of the UK economic data (in rate of change terms) may very well be behind us
- The Bank of England is starting to sound less hawkish than they have for the past 18 months
- We encourage you to raise your Cash position and allocate to the Long Bond (TLT, EDV)
FXB was added to Investing Ideas on 8/13/2014. We’ve been offsides on our position in recent weeks, despite resilient fundamentals to support our positioning.
Going forward, should Fed policy become increasingly dovish alongside the ECB, we could return to the FXB on the long side.