A slide in the Pound overnight reinforces the corrective tilt that has been in place since July 2nd. Addinginto the corrective bias is disappointing UK May factory output results which fell by 1.3% relative to the priormonth. With the Dollar also showing ongoing strength off rising rate talk, the Pound is also losing some value off anarrowing of its interest rate differential argument. Near term downside targeting is seen at a recent low of 1.7076and then not until an old quasi double high of 1.6991.
