A recovery effort remains under way in the Pound as the situation in Ukraine hasn’t markedly changed from Friday and the competition against the Pound is non-existent. In fact some of the gains in the Pound fromlast week’s lows are probably the result of disappointed Dollar bulls and some of the gains are probably the resultof ideas that the situation in the Ukraine might remain under control in the short term. Clearly the Pound isgarnering some of its lift from BOE suggestions that UK rates will have to rise before wage inflation pressuressurface and that in turn leaves the BOE as one of the “few” central banks even considering higher rates. We can’targue against a rally to the top of the down trend channel line which sits up at 1.6793 today but that line fallsdown to 1.6776 on Tuesday.
