Now that the Pound has returned to contract highs and it has seemingly lost some upward momentumaround the 1.68 level it becomes imperative that overall global economic sentiment improve to facilitate andextend the dominance of the Pound relative to most other currencies. Overnight UK GDP results clearly trippedup the Pound as the June contract saw a high to low compacted slide of roughly 54 ticks in the wake of the data,as the market was hoping for something stronger from one of the world’s leading recoveries. We don’t seejustification for a significant knock down in the Pound, as its economy is a distinct backstop and better USeconomic news ahead could help the June Pound respect recent consolidation support of 1.6759.
