Like most currencies, the near term path of least resistance remains down in the Pound. While the actual rate announcement from the BOE might offer some volatility, the trade isn’t expecting a change in rates today. However, the Pound remains in a downward bias on its charts and it remains in a downward track offrecent economic news flow. While the July and August slide in the Pound has taken out a portion of its economicdifferential premium relative to other currencies, we can’t rule out a further slide to 1.6750 if the Russian flapescalates and turmoil and volatility in global equities continues.
