Talk of tightness in the UK jobs market, favorable Euro zone and German data and hints that the PBOCis poised to cushion its economy should leave the Pound pointing upward. However, the Pound bulls will need toskirt the US payrolls without seeing anything patently discouraging. We think a solid low was forged with theconsolidation zone of the last week and that the Pound is poised to claw its way back toward the 1.70 level.Critical support and a buying zone in the June Pound is seen at 1.6768 today.
