With positive UK data flowing recently and the Dollar reversing course the path of least resistance in thePound remains up. One might have expected comments from the BOE to have held back the Pound, as Fishersuggested that the BOE was still a long way off from raising rates. However, the market took the mere discussionof “raising” rates as positive, because most other central banks are considering more easing, or tapering ofhistorically high easing efforts. With the added benefit of weakness in the Dollar, the Pound gets most of thebullish currency lift available in the marketplace. Near term upside targeting is seen at 1.67.
