Surprisingly the Pound is off balance this morning despite favorable UK economic data. UK economicdata on April manufacturing output rose +0.4% and perhaps the trade was expecting more forward momentum inone of the world’s leading recoveries. In fact, the Pound was marginally lower in the face of a 5th straight monthlygain in UK manufacturing output. Therefore the Pound looks to lose to the Dollar and Yen ahead with initialdownside targeting seen at 1.6697. To turn the last month’s down trend around in the June Pound, probablyrequires a trade above a down trend channel resistance line drawn off the May and June highs which comes intoday at 1.6825 but that trend line resistance falls down to 1.6818 on Wednesday.
