There has been no break in the Pound’s downside breakout as prices have fallen to their lowest level since mid-June and over 3 cents below their mid-July spike high. Comments from a BOE official that it was “quitepossible” that the Pound was overvalued have combined with weak private surveys on UK Consumer Sentimentand Housing to keep the pressure squarely on the Pound this morning. A recent comparative advantage over theEuro may be of little help going forward, although there appears to be decent support between the 1.6854 and1.6838 levels that will keep this selloff from getting out of hand in front of tomorrow’s data from both sides of theAtlantic.
