Soros vs. Rogers: Pound Sterling Headed for Parity with the U.S. Dollar?

Jan. 29, 2009 3:45 AM ET4 Comments
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by Sean Hyman

George Soros is the world renowned investor that shorted the British pound so heavily back in 1992 that it was even more than the Bank of England could combat and it forced the pound out of Europe’s system of linked exchange rates. The plummeting pound caused the central bank to panic and for Soros to profit… to the tune of $1 billion dollars in profits. So that tells you just how enormous his position had to have been.

That trade alone really gave him a platform from which to speak from and be heard. However, he has had other “great calls” too. For instance, he “bet” correctly when he said that the Deutsch mark (which is now part of the euro) would rise when the Berlin wall fell.

He also called a top in Japanese stocks in 1989. So he’s made some good calls through the years.

Lately, Soros has been busy shorting the pound again. He shorted it all the way down to 1.40 and then took off the short position. He now says he’s neither bullish nor bearish on the pound at this point. He simply took off the trade because it didn’t seem that the risk to reward was there on the trade any longer.

The pound plummets again and Soros “moves in for the kill” once again!

Soros told about his latest trade and his “new profits” at the World Economic Forum in Davos, Switzerland.

So does everyone hold this view? His old trading partner who founded the Quantum Fund with him, Jim Rogers, doesn’t seem to agree. He is very opinionated on the pound. In fact, on January 20th, he came out and boldly claimed that the pound was finished and that it should drop to parity with the dollar (in other

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FXedu ( provides affordable, online investing courses that enable everyone to effectively manage their money by making sound financial decisions. Making sound decisions is a prerequisite to achieving your financial goals and becoming financially secure. FXedu offers numerous courses that cover investing, managing ones personal finances and currency trading. FXedu's team of instructors pride themselves in thoroughly answering questions and patiently guiding each and every student through the course. Our instructors have years of experience trading various financial markets. They also have years of experience providing financial planning advice to individuals like you. Bob O'Brien has over 14 years experience as a financial planner, tax advisor and investor. He became interested in finance at an early age and has been a financial planner and tax advisor for firms like Ernst and Young and TIAA-CREF. Sean Hyman has an extensive background in the financial markets that goes back over 15 years. Over his career, Sean is a financial writer and key speaker at conferences both nationally and internationally. Mike Conlon has over 12 years of trading experience, with a focus on stocks, options, futures, and forex. For firms like Merrill Lynch and Donaldson, Lufkin, Jenrette (DLJ) Visit the FXedu blog:

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