The Pound has seen some volatile trading action during the overnight session as it has given back sizable gains to fall into negative territory. While UK jobs data showed some positive signs with wage growth anda decline in the Claimant Count, the BOE’s Inflation Report has put heavy pressure on the Pound as it projectsthat UK inflation may fall below a 1% annualized rate within the next 6 months. This may push back any potentialBOE rate hike towards the third quarter of 2015, creating fresh headwinds for the Pound to overcome. Thereshould be decent support around the 1.5819 and 1.5786 level, but the Pound may need to look across the Atlanticin order to revive this week’s rebound.
