The Pound is back in favor and it seems to have definitively rejected a temporary retest of the 50 daymoving average down at 1.6790. The Pound continues to win by default but it also continues to be underpinnedby solid data. Yesterday the UK posted more gains in House Prices and that in turn confirms the forward motionin the UK economy and that also increases the prospects of rate hikes in the UK. Right now there are very fewcentral banks that are even being presented with the “need” to hike rates. The trend is up and the recentcorrection should take some of the downside threat out of the Pound trade. Near term targeting is seen up at1.6840 and then again up at 1.6880.
