A comparative advantage over their Euro zone neighbors has been of little help to the Pound this weekas prices continue to slide further to the downside. Comments from the IMF that the Pound may be as much as10% overvalued are not playing well with the market, which has not seen recent UK data match the optimism feltduring last month’s rally above the 1.7100 level. There appears to be decent support around the 1.6908 area, butthe Pound’s best hope for putting the brakes on this selloff appears to be with taking the steam out of the Dollar’srally.
