The Pound has been able to rebound slightly in the face of a positive 2nd Quarter GDP result. However,the GDP result is only positive because of an extremely low bar of readings from elsewhere earlier this week! Weacknowledge the capacity to bounce off UK growth but seeing a definitive extension of slowing prospects from aRussian incursion and or evidence of soft US Empire state manufacturing results later today, probably puts thePound back under a cloud of overvalued suspicion. Expect more slow erosive declines in the Pound ahead butGDP provides only a temporary crutch.
