Much softer than expected UK inflation readings prompted a significant washout in the Pound to starttoday but to the bull’s credit, the Pound was able to quickly reject that washout. We continue think that the Poundis a recovery currency that is capable of rising in sync with equities and the global economic outlook. In the shortterm, the economic outlook needs support from strong US data, or the Pound could temporarily retest the 1.66level. Uptrend channel support in the June Pound is seen down at 1.6610 today but that up-trend channel supportline rises to 1.6619 on Wednesday.
